Thursday, January 5, 2012

EOD Analysis for 5th January 2012 and Outlook for 6th January 2012

Still no trace of volumes and OI in Nifty futures pretty much the same as yesterday i.e. about 23.5 million
Whilst BNF and CNXIT are marginally up and Nifty seems to be relatively flat, broader markets are clearly indicating a lot of selling pressure.

Critical levels and outlook remain the same and just to recap

Supports: 4640-4690-4720

Resistances: 4751-4780-4808-4840

A close above 4840 may yield another 144 points UP whilst a close below 4690 may yield another 144 DOWN

As per the time analysis, we are entering the high volatility and action period 6th Jan to 12th Jan
Frankly, at this point of time I am clueless of the direction but it will be at least 150 points from today's EOD value and days with lot of good trading opportunities and I am slightly biased to the downside

Justification:
1] There is a gap-up we had earlier this week that needs to be filled
2] Yesterday's EOD candle showed traits of a Bearish Tweezer

Standard Disclaimer: Please do not take uni-directional positions unless trend gets clear. Trade with the edge of hedge till we get clarity in direction

2 comments:

Satyanarayan said...

Dear NagRaj,
What is this 144 point strategy. How you conclude the same number for UP or DOWN?? Please elaborate if uu don't mind...

reachnagraj / theknight16 said...

Dear Satyaji
Frankly I am myself in learning mode and won't be able to explain with total clarity about the logic

I am going through a book which is a treatise on Gann Principles by Patrik Mikula

144 is a Fibo Number and a part of Gann 12 Square

The 4640-4690 is a critical angular support and 4800-4840 is a critical angular resistance [same as was the case with 5950 and 5740 last year for critical angular resistances - so a breach of such critical angular supports/resistances tend to yield about 144 points in the same direction just as we saw with breach of 5408 and 5177 last year]