Positive start to the day aided by global cues and OI in Nifty futures was around 29 million in the morning itself; VIX cooled off below 25 as well and this is respite for bulls.
Critical Levels and outlook remain unchanged:
Recap:
2 consecutive closes above 5408 and Nifty opens for 5532-5580-5608 on the upside
2 consecutive closes below 5325-5348 band and we are likely to see a retest of 5177-5196 band [and this should be considered as floor for another 12 odd sessions unless some extremely bad news crops up]
Current volumes are good to sustain upside upto 5440-5480 levels and we need at least 5% more volume to sustain another 100 points on the upside. For downside, these volumes are good enough for 150 points fall :D
BNF has managed to pull off the upside targets so far; 10800 will be a strong resistance which if taken out on closing basis will open BNF for another 350-400 points. It would be prudent to trade light until Friday considering volatility and some headwinds
Dow/SnP 500 seem to be in a topping process and one round of correction is expected in the next 2-3 sessions. IMHO the odds of this is very high as the Advance/Decline ratio has been negative and volumes traded also have been quite low in the last few sessions. All these point to negative divergence and potential profit-booking. Dollar Index is expected to start scaling up towards 81 and all of these high probable events co-incide with our budget session.
[I agree with Raghuji that we should let the charts guide us] but in these turbulent sessions, only experienced and/or disciplined traders can do well. So will end this post with a simple mantra given by Raghuji 'To Each His Own' - HHHHHHHH
Critical Levels and outlook remain unchanged:
Recap:
2 consecutive closes above 5408 and Nifty opens for 5532-5580-5608 on the upside
2 consecutive closes below 5325-5348 band and we are likely to see a retest of 5177-5196 band [and this should be considered as floor for another 12 odd sessions unless some extremely bad news crops up]
Current volumes are good to sustain upside upto 5440-5480 levels and we need at least 5% more volume to sustain another 100 points on the upside. For downside, these volumes are good enough for 150 points fall :D
BNF has managed to pull off the upside targets so far; 10800 will be a strong resistance which if taken out on closing basis will open BNF for another 350-400 points. It would be prudent to trade light until Friday considering volatility and some headwinds
Dow/SnP 500 seem to be in a topping process and one round of correction is expected in the next 2-3 sessions. IMHO the odds of this is very high as the Advance/Decline ratio has been negative and volumes traded also have been quite low in the last few sessions. All these point to negative divergence and potential profit-booking. Dollar Index is expected to start scaling up towards 81 and all of these high probable events co-incide with our budget session.
[I agree with Raghuji that we should let the charts guide us] but in these turbulent sessions, only experienced and/or disciplined traders can do well. So will end this post with a simple mantra given by Raghuji 'To Each His Own' - HHHHHHHH
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