Wednesday, July 8, 2009
Reigning The Nifty - 9th July, 2009
Yesterday's comment was,"Today's movement was in an equilateral triangle, and the coiling might end tomorrow giving us direction. The break should be in the downward direction but trading above 4223-4230 will give an upside breakout".
The Nifty resumed it's down move and broke all supports and is now on the brink of the free fall zone --- the non traded zone of post election gap opening. I have put up the nifty futures daily charts to show this as the gap up opening is not viewable on nifty charts. On sensex the level is at 13480. Advance Declines were highly in favour of declines. Volumes on today's fall was much higher than on yesterday's tepid rise.
Amongst the Daily oscillators, stochastics is in oversold zone and macd has moved below zero. Rsi 14 is yet to reach the oversold zone. The intraday oscillators are all attempting to move up from the oversold region. So the short term is getting oversold and one needs to be careful with shorts. Booking partial profits on shorts would be advisable as we could expect a pullback soon to correct the oversold condition. Rest of shorts can be carried with a stop loss of 4250 or 4480 depending on your risk taking capacity.
Happy Trading !!