Tuesday, August 2, 2011

Trading Nifty 03-08-11

The indication of strength in short term ,trading above 5480 level, mentioned yesterday, was broken in first few minutes of trade and never recovered.

The bias is firmly Down trading below 50dma now.

If the Preferable EW count in the Weekend post - Click Here  holds good that we are in the 3rd wave , then a fast move to apprx. 5300 and then below it is on the cards.

Caution against this comes from highly Oversold Hourly with positive diversion, Prices near Weekly long term trendline and 5400puts not shedding any O.I. , all indicating a bounce.

Nevertheless, Trading this chart without any bias and managing trade keeping 5485 as SAR now, will be profitable.


Kumar Technicals said...

Dear RV!

Very good midweek updates, thanx a lot.



KRG said...

looking bad below 5400 !

AAR VEE said...

Thanks Kumarji.

AAR VEE said...


'BLOODBATH' to come ???

KRG said...

Aar Vee: The last standing bull (I guess I am one of them!!) gives up..Capitulation or perfect RSI for an upmove.. You decide.. Check out the new EW count I put out

Rupee & the benchmark OIS swap also are favouring an asset meltdown