Thursday, February 23, 2012

EOD Analysis for 23rd February 2012 and Outlook For 24th February 2012

OI in Nifty futures pretty much unchanged from yesterday.

Critical levels and outlook remain unchanged; even in case of severe profit booking, expecting 5177-5196 to hold out on closing basis till 29th Feb '12.

Just some points to highlight once again

Volume: Today being expiry, high volumes are logical and some drop can be anticipated in the next couple of sessions; as long as the OI in Nifty futures is around 27-28 million or so, bulls can manage the upside

Price: 5408 on a weekly closing basis will be critical tomorrow; holding 5408 on closing basis tomorrow means more steam for bulls and a close below 5408 on weekly closing basis tomorrow means more room for correction. 5408-5532 on closing basis is a good consolidation zone based on last year's data as well.

2 consecutive daily closes below 5408 and we are near certain to retest 5200 and expect that to be the floor for the next 5 sessions or so

2 consecutive closes above 5532 and we can see an attempt once again to take out 5608-5655-5690 [here the volumes will be crucial as mentioned above]

Profit-booking and consolidation phases are healthy and good for the market; odds as of now are stacked in favor of bulls

Last but not the least, a word on BankNifty [I don't have my EOD files and charts yet :(]; my gut feeling is that yesterday's candle was an ONR4 [I have addressed the query to my seniors late last night and await an answer; today seems to be an inside bar; this counter may surge again or stage a further correction so caution advised [alert and savvy traders can straddle this opportunity via futures ;-)]- will update later tonight in comments section once I have time and data in place :D


SATYA KAMA said...

Dear Mr. Nagraj,

If possible please give the possible most volatile days for the March series in your updates tomorrow.


reachnagraj / theknight16 said...

Dear Satyaji: It will be done tomorrow but as usual, please take the dates with a pinch of salt....

SATYA KAMA said...

Nagraj Ji,

The dates mentioned by you always helped and guided us and we got benefited out of this information.

If it is feasible could you please guide/educate us on the technique of arriving at these dates?

Please suggest us of any study material/books on the subject.

Thanking You

reachnagraj / theknight16 said...

@Dear Readers
Just got my EOD data updated and saw the BNF candle; it is not an Inside Bar but just a doji - made a lower low and lower high today but needs to be confirmed tomorrow whether the downside will continue or get stemmed.

Also with regards to Nifty, it is still within the price channel of the rise from 4531 - so no alarm bells yet :D