Thursday, September 11, 2008

Nifty Displays Short Term Bullishness

I feel great pleasure in informing you, my readers, that today happens to be my 200th post on this blog. What Brian Lara has done 9 times, Don Bradman 12 times, Rahul Dravid 5 times, Sachin Tendulkar and Sunil Gavaskar 4 times each (a score of 200 and above), I have done once :-). It's nice to be in this elite club of 200 and above.

The Nifty opened with a downward gap of about 50 points consequent to bad American and Asian markets. After some initial hitches and an hour of range bound trading, it staged a good recovery to fill the gap with which it had opened but at 12:30pm it started the southward journey once again and this time it was a consistent fall. A little bit of recovery in the last 30 minutes made the Nifty end the day with a loss of 68 points and the BSE Sensex closed 238 points in the red. In the international scene, as the things stand now (at the time of writing), crude, after making a low at $101.50, is now trading close to $102.50, FTSE closed about 50 points down, while Dow Jones is about 90 points in the green after a loss of 280 points yesterday.

Nifty 30 Minutes - Stochastics Gives Buy Signal

Seen above is the 30 minutes chart of the Nifty. Along with the prices, at the bottom is shown the stochastics oscillator. As can be seen from the chart, the Nifty opened the day with a huge upward gap on 8th Sep 2008. This gap up opening was fully closed/filled today and it was then that the recovery came about in the last 30 minutes. Also shown on the chart is a small trading range within which the prices are moving for the last six days. This range is between 4340 and 4520. A move outside this range will give us a tradeable move in the short term. A trendline in black color has also been drawn on the chart connecting the pivot lows formed from 28th of last month till date. If one looks at the stochastics oscillator, one can see that a buy signal was given today in the last 30 minutes when the %K line (red) crossed the %D line (black) upwards, which is again a short term bullish sign. So, it makes sense to buy Nifty or Nifty calls for the short term with a stop loss of 4380.

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  1. Congratulations Vikas for making a double century .Its really a great achievement because you are giving important time of yours on daily basis to let us know the movements of market ........

    We are ( all reader)thankful to you for writing this blog & wish you grow alot in your life .....

    You have a chance to break the brian lara record of 400 so keepup the good work hehehehe .....

    Take care & bye.......

  2. hi vikas , hope u remember me !!
    i hv been short on nifty from 4500 onwards . nifty is headed towards the lows possibly even breach it with ease .
    here is the logic ...
    wave 2 of last double zig zag is now over . Wave 3 may hv now begin .
    a move below 4200 should confirm my beleif .
    another trigger could be closign below 4350 which should trigger the bears as that would confirm a lower top and lower bootttom . ( check line chart of fut nifty )

    happy trading !!