Thursday, August 11, 2011

SGX NIFTY & NIFTY ON 11-08-2011

SGX Nifty closed in Red. So Nifty here may Gap down. Markets are trying to find foothold above the recent lows and may test 5050-5000 levels.


 Fibonacci Retrace levels of the upmove are given in chart , Volume profiles may not work well now due to gap up and downs but 5075 apprx may act as initial support if trades below 5100 , above 5160-65 has emerged as a HVN and will act as a  good Resistance , Dont be short above it . Can keep 5100 as SAR and trade the chart tmrw. Though 5000 or 5050 has good chance of holding on closing basis , Below it may well be all Red. Trade very light , cut positions fast till the Market settles in a new range. Better Stay Away.

8 comments:

bizagra said...

dear is this iv wave going and after tomm gap down again c wave up possible ??

AAR VEE said...
This comment has been removed by the author.
AAR VEE said...

Ya Bizagra it may be the ivth of the 3rd and now may be in the b wave (can easily correct to 5000 levels and keep the chart intact).If 5000-5050 holds than a triangle may develop in this ivth as above 5200-5250 seems a good resistance . this b may be complex ,Range bound trading for few days to keep option writers happy ( check the ratio of option trading in whole f&o segment )

Piyush Sharda said...

rv
based on what it looks to me i think only 3rd of 3rd frm 5702 is complete. 4th however with such and extennded 3rd there can be a truncated 5th of 3rd frm 5702. then a 4th frm 5740.
does it look different to u?

Piyush Sharda said...

4th goung on instead of "4th"

AAR VEE said...

Hi Piyush,

Just check out my comment to bizagra above . I am also taking it as 4th wave of the 3rd (expect to end may be mid next week).5th of the 3rd will follow may be truncated ,may be not :)will depend on expiry pressure developed till then.

It may be followed by a larger 4th which will retrace whole of the 3rd ( from 5700 - bottom created) and may consume whole of sept.

Just thoughts :))

Piyush Sharda said...

rv,
i read in beckman that suppose wave 3 ( comprising i ii iii iv v) is there corrected by wave 4, wave 4 shud be greater in time and amplitude than ii and iv. what r ur thoughts on this

AAR VEE said...

PS,

Thats logically true as wave of higher degree should be greater in time and amplitude than its corresponding lesser degree to fit a wave structure well.

since 4th will be correcting the 3rd ,its time may be greater than the 3rd.(not a rule but happens often)

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