Monday, May 13, 2013

Nifty Update


Check out the charts updated from last week's post with observations .


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2.




3.



Strong trend . Weakening momentum , lower volumes , negative divergence . Important first half of the week , to signal if a correction has to set in or continuation of Uptrend . Weak below 6050 , Strength above 6125 . 

14 comments:

chetas said...

hankyou verymuch Aarvee,

crystal clear Post once again, worth waiting till the mid night :)

I was confused whether its ED or not, your wave marking , the RED c,d,e or ALt C, gives me the much needed clarity.

AAR VEE said...

@Chetas

With strong trend be cautious for a pattern failure too . Let TL decide along with price action.

Anonymous@V said...

fii shorting stock futures and buying nifty futures....corelates well with the technical analysis....they are hedging their cash and nifty buy with stock future selling....so a profit booking is overdue...it will come abruptly....but as of now the momentum players want to push up the markets to new high....bear barbeque is what the bulls want to have for the weekend party...


Thanks RV for the timely update...it gives me confidence to trade...

Cheers

rajapvt said...

Thank you for the update.

AAR VEE said...

UPDATE
-----------

Nifty obliged with the break of ED pattern being discussed since cross of 6020 last week.

Now the positional resistance comes in 6025-45 zone whereas the target comes to 5930 , 5890 , 5865 apprx.

Apprx 5870 is 38.2% retrace of 5477-6114 and also is the apprx wave 4 end. This can be primary positional target as of now .

chetas said...

Thanks Aaarve for the caution, I was able to beenfit by shorting when the TL broke :)


anonymous@V said...

thanks RV

rajapvt said...

What a blast today, are we running in 5th now? Any updates, please share.

AAR VEE said...

The short position got whipsawed at open and the probable 5 wave move down from 6114 was invalidated at 6065.

Now the move from 6114 to 5970 is a 3 wave corrective move and the move from 5970 has a subwave count directing for a 5 wave move up. So from 5477 ,most probable is that the wave 3 ended at 6114 wave 4 at 5970 and this is a fast wave 5th up.

The close has been above the TL joining 6335-6112. Now the move may extend to top TL joining 5630-6112 as shown in the weekly chart.

Put writing in options at 6100 and even 6200 strike along with 11% NF O.I. addition , suggests a good move up.

6100 now crucial on closing basis to be held for further upmove.

AAR VEE said...

Another probable alternate is an irregular flat formation since 6114.
6114-5970=A , 5970-B contd., C to move down below 5970.

This view is supported by negative divergence in 5 min ,hourly and sell mode indicators in daily TF.

anonymous@V said...

its the liquidity sir that is chasing stocks...to continue for a while....so for all ifs and buts on charts....safe to presume uptrend...thanks RV for the update...

AAR VEE said...

Be cautious of a developing Expanding Triangle Pattern found in a 5TH wave.

If 4th ends at 5867 as in chart ,check for a 5th in ET pattern by joining 6018-6114 for top trend line and 5928-5970 for lower TL. It has done its minimum requirement for the Pattern .

Top TL violation if an overthrow happens above today's high should be watched for a probable top in place and further weakness to come.

Anonymous@V said...

yesterday lot of selling took place in may nifty at 6194 level and lot of buying at 6177 level....so watch this levels....this observation is from tick reading....even today top for may future is 6194....6180 looks like congestion zone above which bulls will try to target 6200 plus range....the final push to take bears home for the weekend barbeque...

Anonymous@V said...

dear RV, please keep updating regularly...i will also keep sharing my views....hope it helps...

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