After flat American and Asian markets, nothing much was expected from the Indian markets too. And, as expected, the opening was nothing to talk about. Today was F&O expiry day and on F&O expiry days markets generally remain volatile. That was not the case this expiry. The Nifty, after a week opening, started going down and it wasn’t until 1:45pm that the fall stopped. But by that time, the NSE index had already shed about 80 points. A little bit of recovery came about post 2 but as the market neared closing, the movement too stopped and the Nifty slipped into a 10-15 points range after that. Today, Thursday, was a good day for the European markets and so does it look for the American markets. The London FTSE and the German DAX closed with gains of 2% while the French CAC was up 3%. The Dow Jones, at the time of writing, was trading with gains of almost 3%. Crude had increased to $108.65 intra day but had come back to $106.90.

With the American and European markets good today, chances are that we might open strong too. In case we don’t, or if we do and then come down then support comes in near the green line (the thinner one) near 4073-4075. A move below this level should, rather could, bring us to levels of 4000, 3950 and possibly 3800. With the new F&O series taking over tomorrow, let us see how it makes the Nifty behave.
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Hi vikas ,thanks for ur post ..
ReplyDeleteDon't you think if market is in sideways movement than MACD is bit irrelevent because than it is too late to follow it ?
Vikas can you suggest one thing isn't it better to be day trader rather than taking position in this volatile market where u dont know what will market do next?
Deepak, you are absolutely right. MACD is an indicator based on the moving averages and since moving averages do not work well in a sideways market, same is the case with MACD. But MACD is still better than moving averages because of the signal line in that. In sideways markets, use oscillator indicators like stochastics, Williams %R, RSI, momentum etc.
ReplyDeleteRegarding becoming a day trader, it's your call. Day trading is equally risky, if not more. Being a positional trader is the best thing that can be done in this sort of a market. But yes, being a day trader or a positional trader is better than being a swing trader these days.