Thursday, March 24, 2011

Nifty Trading for 25-03-11

Today's close was with a Bullish undertone, yet not decisive as it failed to close above the important price level of 5540. But importantly Prices have closed above the Weekly volume resistance of 5510 level as well as 50dma.

 

1. Today's upmove is on a low volume trading day.

2. Interestingly FII's are net buyers since last three days and 5400 Puts have again accumulated O.I. of 1cr+ . 5500 level is the war zone now as per Option's data.

3. Negative diversion exists today also on the 5min chart. Intraday charts are overbought in 15,30 and 60min TF. A good intraday trade on downside can be expected below today's high .


4. 5470 level should be the SAR for tomorrow's trade. Below today's high ,the gap created at the open may be filled . The price action near the 5465-80 range will decide the next leg of the intraday trade.


5. The EW count on Hourly chart suggests that the 'e' leg of the triangle in which the 4th wave is moving ( see chart - Click Here )  can have the intraday trade initially down and then up to complete / near complete the 3rd wave of this 'e' leg.


6. Up move can be expected if the SAR of 5470 holds and prices trades above today's high. Next resistance comes near 5560-80 level. Below 5470 will get support at apprx. 5450-5425 level.

7 comments:

Arvind said...

Dear Aarvee

I look forward to your analysis on a daily basis. It gives a clear picture of the market . Thanks a lot.

Regards

AAR VEE said...

The Global mkts are giving an impetus.

If opens near 5560 levels ,one may book out the longs and than keep today's close as SAR and trade further intraday.

Rajib said...

Hi AAR VEE,

Many a times the 'gaps' are not filled in immediate near days ... it might as well take the next larger wave corrections to fill them up ... remember 11Feb - 14Feb gap was filled up on 24Feb!

Hence, one can decide as per ORB whether to close the longs or continue with the trends with SL.

AAR VEE said...

Hi Rajib,

I am not a particular gap enthusiast:) just that few pointers were asking for it. Looks like the global cues will take over.
I also remember the biggest gap election time may 09 ,yet to be filled :))

Even before ORB if we run into resistance of a known level ,booking is prudent.at least for part.

KRG said...

Hi AarVee: Is there an easy inter-active chart access on the internet? I use Reuters from our dealing room but it is highly inefficient to post thru word document

AAR VEE said...

Hi KRG,

Couldnt get ur question in full.

for blogging i use to save charts as image(select and save as picture,normally in .png format ) and then post.

On net u can find interactive charts working in RT at yahoo ,google,indiabulls,quote.com,volumedigger,big charts,big paisa, etc and many other sites.But I think u may not be looking for these.

Other RT interactive free softwares can be downloaded from net as motive waves( 30 day trial),ninja trader,amibroker,best charts, etc. which work well and have large no. of indicators and charts can be saved as image.I personally use GCI-MT4(free downloaded) in real time.

Though amibroker also has a free trial version ,i am yet to use it as data is to be uploaded daily eod ,paid data for RT and afl usage for programming.

for eod interactive chartnexus software (free)is what i use ,
few sites as rupeeking ,icharts,investbulls,stockcharts,freestockcharts,futurepros
etc have eod interactive charts on it.

some of the links are at @ resource section on RH sidebar in the blog,click 'my trading diary'

let me know in detail what u are looking for? then i may be able to help.

KRG said...

thanks

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