Saturday, September 11, 2010

Weekend Analysis

1. Indicators : The short term indicators show overbought zone of trading with negative diversion.

2.Volume Profile : The volume profile shows initial support for the upmove at 5595 level and major support for positional trading at 5490 level.

3.Trendline: Keep an eye on this trendline break for some correction in near future.

4.EW count: The probable EW count for the upmove since 5350 shows the 3rd wave is on
 ( with maybe some upmove left in the last leg,if not completed on thrusday ).This cautions us for some correction in the 4th wave that may not go down below 5515 level.

5.Option Analysis: As was indicated earlier, the range shifting has taken place from 5400-5600 at the start of the series to 5500-5700 in this week. Now the 5500 puts have O.I. of over one crore and 5700 calls have highest O.I. of call side above one crore.

6.Fibo -Retrace: If this upmove ends near here than the probable targets for the correction may be near 5575-5530 zone.It also concurs with the EW count and the Option Analysis. 

                                                          Have a Great Weekend !!!!


Sujatha said...

Thank you Aar Vee :)

150% 5650
175% 5700
200% 5751

The above is the highest in "monthly levels" as per GANN. Nifty is now trading in monthly resistance level in all the way.

Happy week end

AAR VEE said...

Thanks Sujatha for the levels.

If the 3rd wave extends then it can be 1.618 times the 1st wave and can touch 5740 !!! your apprx. 200% gann level.(though i doubt this level will come in 3rd )

mo k said...

Like a tractor on a surefooted crawl the indices seem to go with a purpose, like our purposive trading :)
and, with you [sujatha and aarvee] it finds the footing better i suppose ...
Have a great weekend,,,
will try catching up with you in another break.

alphabet1 said...


can you also post option pain charts for quick reference.
ref. OptionsOracle

nice quick reference charts.
Confession. Saves me lot of hardwork.

mynac said...

Dear AAR VEE,Sujatha,
Very useful illustrative analysis & imp.Gann levels.Now a day though short term indicators are showing market is over bought with N.diversion,& though it has 5650,5700,5751 as told,Bulls are not in the mood to think over it.On Monday, IIP Nos.& monthly vehicle sale's report would be new trigger's for Bulls to use.But,
I will follow your trend line for this week & Sujatha's monthly Gann levels.Thanks a lot.

AAR VEE said...

Hi alpha 1,
Thanks &
Sorry ,i dont use the option oracle ,may be mok can help if he gets time.

Hi mynac,
Thanks,its time to do profit booking and trade light ,may be buy on dips at imp levels.

AAR VEE said...


It crossed all the % levels of gann and estimates,EW tells us to believe what we see .Though bullish ,i was not ready to see what markets wanted to show,but luckily they didnt give any whipsaw at trendline to close the longs :)).