Wednesday, March 14, 2012

EOD Analysis For 14th March 2012 and Outlook For 15th March 2012

Yet another positive start to the day [and a gap-up] aided by positive global cues; VIX a shade below 25 and significant premium restored on Mar Nifty futures [was expecting a drop in premium as mentioned on Friday which happened for a brief while today but in the last hour, the premium was significantly high]

OI in Nifty futures hovering around 30 million at open today and another million added after Europe open; Nifty made 2nd consecutive close above the 5408 and the odds of Nifty 5532-5580-5608-5690 are high before the end of March series

The run up in infra/capital goods pack has been tremendous, especially LnT that added almost 100 points in the last 3 trading sessions. BNF has closed above the critical resistance of 10800!

Would just like to add here that with 2 more sessions to go before the Union Budget, we may see some wild swings and a round of profit booking before the end of this week. As long as 5177-5196 holds out on closing basis, March series is stacked in favor of bulls IMHO.

Just adding another parallel trendline to the image portrayed on 28th Feb '12
PS: 5850 is NOT the target for March series! [W1-W3 took 2 months so W4-W5 can be expected to go through the same time frame] If the middle trendline is not breached on upside, the last leg up may face truncation......truncation will reverse the upside and retest 5032-5092 levels at a minimum

Last but not the least, there are times when views amongst blog contributors are divergent and that does not affect our relationship in any way; it is also not our intention to confuse readers but to present our own interpretations of charts [sometimes we are right, other times not]; readers are encouraged to exercise their own discretion and adhere to SLs and Hedges;

As Raghuji always says, 'To Each His Own'.........