As usual, a day after expiry and first day of new series, volumes dropped significantly with OI in Nifty futures hovering around 20-21 million for most part of the day and 1 million added with the falls! So we have ended the year 2011 with a drop of about 24% on the index value and still no signs of the correction being over.
The close below 4640, a very critical support of the near term has been broken.
IMHO, we should be able to see the bottom and a swift reversal within the next 3 to 4 months.
As usual, as far as trading is concerned, need to monitor levels on a day to day basis but as far as investments are concerned, one can start buying in tranches as I had mentioned earlier this month as well. Somewhere between March 21st and June 21st, we will see Nifty moving out of the complex diagonal triangle it is trading in for the last 13 months now. IMHO, we should be able to see at least 5200 by Diwali 2013 and by Diwali 2014 we will be able to finally create the new high on the bourses.
For Monday i.e. the first session of 2012, the critical supports and resistances IMHO will be
Supports: 4550-4590-4620
Resistances: 4690-4728-4750-4800-4840
We should not forget that the close below 4690 yesterday has confirmed a visit to at least 4550 in Jan series if not more. Short-covering can only take Nifty upto 4800-4840 beyond which fresh longs are required.
Hope year 2011 proved good for you in trading. I had the good fortune of meeting a lot of good people along the way and thanks to our mahaguru waverider, learning the art of sharing. Some pests did disturb with a lot of mud slinging but all I have now is an attitude of gratitude because all the irritating mud slinging pushed me to spend more time with TA toys and materials. So aall izz well on that front
With that I thank all of you for supporting the team and taking the time to read out our blogs despite the fact that the accuracy levels are still not as good as we expect them to be. I would like to wish all of you a very prosperous 2012 and regardless of what happens on the bourses, may your trading equity swell on the basis of profits.
Happy New Year 2012 - \-/ \-/ \-/ Cheerz
The close below 4640, a very critical support of the near term has been broken.
IMHO, we should be able to see the bottom and a swift reversal within the next 3 to 4 months.
As usual, as far as trading is concerned, need to monitor levels on a day to day basis but as far as investments are concerned, one can start buying in tranches as I had mentioned earlier this month as well. Somewhere between March 21st and June 21st, we will see Nifty moving out of the complex diagonal triangle it is trading in for the last 13 months now. IMHO, we should be able to see at least 5200 by Diwali 2013 and by Diwali 2014 we will be able to finally create the new high on the bourses.
For Monday i.e. the first session of 2012, the critical supports and resistances IMHO will be
Supports: 4550-4590-4620
Resistances: 4690-4728-4750-4800-4840
We should not forget that the close below 4690 yesterday has confirmed a visit to at least 4550 in Jan series if not more. Short-covering can only take Nifty upto 4800-4840 beyond which fresh longs are required.
Hope year 2011 proved good for you in trading. I had the good fortune of meeting a lot of good people along the way and thanks to our mahaguru waverider, learning the art of sharing. Some pests did disturb with a lot of mud slinging but all I have now is an attitude of gratitude because all the irritating mud slinging pushed me to spend more time with TA toys and materials. So aall izz well on that front
With that I thank all of you for supporting the team and taking the time to read out our blogs despite the fact that the accuracy levels are still not as good as we expect them to be. I would like to wish all of you a very prosperous 2012 and regardless of what happens on the bourses, may your trading equity swell on the basis of profits.
Happy New Year 2012 - \-/ \-/ \-/ Cheerz
7 comments:
Wish you a very happy and prosperous 2012 Nagraj ji.
Wishing u a very happy 2012.
Wish you all the members a 'VERY HAPPY & PROSPEROUS NEW YEAR 2012.
dear nag raj bhai
wishing you and your family a happy new year.
Wishing you all the members a 'VERY HAPPY & PROSPEROUS NEW YEAR 2012.
Dear Nagraj wishing u good luck and a very happy and prosperous new year. Thank you so much for all the hard work that u have put on ur blog for everybody and God Bless.
Dear Nagaraj,
You are doing excellent service to all retailers and wish you a happy and wealthy 2012
Best Regards
Ashok Kamath
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