iCharts Discussions

[psalm]

The market closed Very weak on Friday as per both daily and weakly charts. That means more selling on the cards. But as per the daily chart, some indicators appear to be a bit stretched. So, a small pullback, before another slide, cannot be ruled out. The levels, i'm watching today, for support are 4580 and 4545. If 4545 is taken out, then there could be another 100 point drop. Talking about higher levels, 4704 and 4773 might act as the resistances.

The events or data to watchout for the day are:

1. Japan Department Store Sales - At 11 AM

2. ECB's Current Account Data - 2.30 PM

3. Eurozone – Construction Output - 3.30 PM

4. U.S. National Association of Home Builders (monthly report) - 8.30 PM

The weak ahead - Global:

On Tuesday, Germany comes into the spotlight with the business and current sentiment index. UK public sector net borrowing figures and housing data from the US is due midweek, before UK and US GDP data for the third quarter on Thursday. The UK is expected to see mild growth of 0.5%, while the US is hoping to have grown 2% in the third quarter. Anything falling short of expectations could see investors’ appetite for risk take a sharp turn in the other direction. Ending the week, the US releases personal consumption expenditure data and new home sales figures.

[psalm]

If Nifty comes to 4550 levels, one can buy it with a STRICT Stop-loss of 4535. The target is 4700.

[psalm]

Nifty is around 4558 now. If one can afford to have 20 points, he can buy nifty now with the stoploss just below 4535.

[psalm]

Resistance for the market might come between 4615 and 4635. This is just for the last hour of trade. I have mentioned Resistances here, cos i believe the market might reach those levels later today.

[vinay28]

good call again psalm. it did find resistance there

[psalm]

But i'm expecting the market to touch 4700 before coming down again. May be tomorrow, one can expect it. That will be another opportunity to exit the LONGs or for fresh SHORTs.

[psalm]

The market might find the resistances around 4640 and then 4490-4705 area. The support will come in at 4570 and then at 4535. We can expect a small shortcovering today, I guess. In a few stocks, we might see some recovery. But it doesn't mean that the trend is changing. This is a SELL ON RISE market. The trend is CLEARLY DOWN. If the market comes to around 4690/4700 levels one can short it with a stoploss at 4710 for a target of 4650 and then 4550. The levels I'm mentioning here are all spot levels. Good Luck with your trades.

[psalm]

The market looks really weak. Even a small up-move is not able to sustain. It is pretty risky to hold any positions in this market. Looks like the Bulls are clearly on the back-foot here. The Low made today is 4532 and the high is at 4637.

[vinay28]

I have been slowly developing a contrarian view. Even if it makes a new low tomorrow, if at all it makes one, I am looking for a sharp rally in next 7 days.

[psalm]

Vinay,

Today is that day that you have been waiting for, I guess. But I'll be looking to sell at higher levels rather than buying it. Its better to avoid this up-move because its like going against the trend which is risky. However, if somebody have LONG positions from yesterday, they can hold onto their positions, I believe. I hope you have LONG positions from yesterday. But, I'll be really cautious if the market goes to 4700 levels. In fact, I'll be selling Nifty between 4675 and 4690 if it goes there today. The stop-loss of that trade will be 4710 (All spot levels). I expect the market to reach 4450-4400 levels after hitting the 4700 levels.

[vinay28]

You are right psalm but I am going by belief that all are concerned about NAVs (and bonuses as Ajay put it) and hence, at least, I will not carry my shorts anymore till dec end.

[psalm]

If someone can afford 20 points, they can SHORT Nifty now. With the stoploss above 4710. Else, they can buy the 4700 PUT also, in that way, they can avoid the volatility. This is a risky trade. If anyone agrees with my view and can afford 20 points or so, he/she can go for this trade.

[psalm]

I have SHORT positions in Nifty now. Will be carrying it for tomorrow. Its a bit risky. I knw that....

[ajayhkaul]

[psalm]

As expected, the market opened UP with a Gap....and then went to a low of 4601 before bouncing back to a high of 4707 with the support of Short Covering and then closed at 4693. Hope you all had a Good Day.