Nifty Recap For The Day!!!

Hmmm the 4370 and 4315 again seem to be back in the reckoning. I had yesterday mentioned that in the event of a Gap Up and failure to sustain above 4370 can be used as a shorting opportunity with a tight Stop above 4390 and 4395. Nifty surged in the opening trade (courtesy Dow and Asian markets), but then that was that. It felt like someone had given that initial push to Nifty and then Nifty seems to be asking now what? Right now we are just reacting to global markets and we don’t have any internal triggers which would push Nifty further. A quick glance at the 5 minute chart below corroborates our view, after the initial opening impulse, we just drifted aimlessly in a tight range. The opening was thanks to DOW and then we waited for direction from Europe for our mid afternoon trades. With no positive cues from that front, the WISE began to book profits and that lead to Nifty sliding below 4370 which was so assiduously held for most part of the day. The signal was given by MACD as marked in the chart.

The hourly chart is in a clear downtrend and needs to take out the previous LH to stall this downtrend for the moment. It’s interesting to note that the Hourly made a straight jab at all the three EMA’s, failed to hold on to them, but has managed to close yet again at 38.2% fib line marked on the chart. Holding above 4280 and then crossing over 4370 on the hourly charts might give us an inverse H&S pattern (too early to talk about that though).

The Daily chart also hasn’t changed much; we are still entrapped between strong S/R points (the Moving Averages and the TrendLines). The view still remains the same; 4250 and 4450 needs to be broken decisively. The traders have their stops in place, what else more does one want? Speaking of wants if only we were clear in our wants NIFTY trading would have been easier! But alas, us mortals we just love to stretch ourselves to beyond our limits.

Greed is a bottomless pit which exhausts the person in an endless effort to satisfy the need without ever reaching satisfaction.
Erich Fromm