Monday, May 11, 2009

Hi friends, welcome back after the weekend and guess what we are once again at a very interesting state in the market. Last week Nifty Future fell off from 3728, our projection was 3745. Today I am going to re-post a chart which i did post as my very first submission here highlighting the current scenario. We took a look at some weekly Ma's (moving averages), and that gave a quite perfect picture about the market at that point of time. The main barriers were at 3540-3570, and I argued that will be the place to look out for, and with a surprise it made a huge leap to cross that area (technically which is correct, any technical levels validity is adjudged not only by the price movement at that certain level/point but Gap ups and Gap downs do symbolizes its logical existence). So as soon it crossed 3570-3540, its next destination was somehow certain towards 3780 (click on the level and it was shown), but that's on the chart made on 21st April. World moved a lot from there. The current scenario is like...........
That 3780 MA on the 21st April right now is at 3733 (also two Fibonacci retraction is coinciding at 3730), and other two MA are at 3570 and 3530. Now from the previous price action (where the had is) we can surmise, we have to wait for some larger movement on either side until 3735/45-3530/20 are getting broken convincingly. And believe me, hourly chart is also indication towards the same level.

3533 is the place where the most important support is placed for the coming few sessions. 3735-3745 is shown on the chart for numerous occasions in the past. On the upside, above 3649-3660 there will be again some interest to retest/break the highs. I personally feel it will be a narrow on upside and relatively large on the downside kinda market for coming session (unless any Gap up happens again). So I would suggest to trade the range as it comes and be light. Any naked positions should be avoided and hedged, because impulse and irrationality should not be there at the time of voting and forming government for our country. Big losses can lead to impulsive voting. So for coming session,

Supports: 3591/3570/3533-3525
Resistances: 3649-3674/3694/3717-3735
(All future levels)
(Weekly & hourly chart attached)
Happy trading and happy VOTING. The fight will be in between who wanna see RED and who doesn't. Specially for the West Bengal people this week. Take care. Jai Hind!

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