S&P500 28th March 2013

Daily Chart

 Resistance at 1565-1576  and  Support at 1555-1547-1538.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

Tata Steel

Daily Chart 

Refer my post  "Tata Steel's Diamond" (  http://vipreetinvestments.blogspot.in/2011/06/tata-steels-diamond.html ) written in June 2011.The stock has continued to remain bearish and has once again broken down from a descending triangle.The stock could seek 200 levels.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 22nd March 2013

Daily Chart

 

Follow up buying failed. Needs to take out 1563.62  for the uptrend to continue.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 21st March 2013

Daily Chart 

 The hammer made on Tuesday taking support on the 20 day Ema was confirmed by a bullish candle yesterday. Needs to take out 1563.62 to be sure the uptrend continues.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 20th March 2013

Daily Chart 

 Support taken on the 20 day Ema.The fall has come after negative divergences appearing in daily oscillators.This could mean a large correction is lurking.

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 19th March 2013

Daily Chart 

 Weakness only below 1531-1526

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 13th March 2013

Daily Chart

Trend is still up since yesterday's candle does not convey any thing bearish.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 11th March 2013

Weekly Chart 

Daily Chart

 Resistances now at 1564-1576

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 7th March 2013

Daily Chart 

A spinning top raising doubts about a correction.Resistance at 1560 and support at 1526

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 6th March 2013

Daily Chart 

1526 crossed easily and the next resistance is at 1557.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 5th March 2013

Daily Chart

Stopped just short of breaking out from the neckline at 1526.

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Lakshmi Ramachandran
www.vipreetsafetrading.com

S&P500 4th March 2013

Weekly Chart

Weekly charts show a hanging man with a lower low lower high candle which is bearish. Occuring at good resistance of the red uptrendline could prove a reversal if the coming week's candle is bearish.The doji formed for the third week in succession shows an indecisive ranged trading which needs to be resolved with breaking abov the red uptrendline or a break below the blue uptrendline at  1467.

Daily Chart 

 Daily charts show a neckline of a bullish head and shoulder pattern formed at 1526.Crossing this level will renew the uptrend once again. However a shooting star and a hanging man in succession could mean more bearishness to come. Supports are at 1506-1495-1487.

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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com

Trading the Nifty

I am  simple and always think simple. I always try to bring down any situation to it's simplest avtaar and then solve it. There are some people who do the opposite and somehow complicate situations for themselves. I agree with Hans Hofmann who gave us this quote " The ability to simplify means to eliminate the unnecessary so that the necessary may speak".  By now you may be wondering why I am ranting about simplicity. Yes, I am trying to convince you why I prefer to trade only in Nifty.

When I stepped into trading, everything confused me.It was mind boggling. Those innumerable stocks  to choose from. What should be the criteria to pick stocks?  I started looking for a 'simple' solution. Then I read about Nifty Futures. A product which had a little of the best of companies in India. Bingo ! Here was my solution !

The Nifty as you would know is made up of 50 of the best performing stocks available on the NSE. It  provides a great way to speculate on the performance of the overall stock market, as opposed to selecting individual stocks and shares.When you take a position on an index, you are effectively investing in the performance of these blue chip shares of which the Nifty is made up of. It is also less of a risk than trading individual stocks, as you are spreading your risk across the whole market rather than on a single company.This was definitely a hassle free way to invest in a basket of stocks that instantly diversifies your investment portfolio across a few sectors.

Whoa ! No scanning those innumerable number of stocks ! No keeping tabs on  the quality of  management or company performance.No botheration about churning the protfolio ! -- This  is done regularly for the Nifty by the Exchange. All I had to do was apply technicals to this one chart of Nifty. What is more, being based on  blue chip securities  the Nifty is considered a good measure of the current market sentiment and so is constantly in the news headlines.This makes it quite easy  to familiarise oneself with the Nifty.

Nifty has lower volatility compared to individual stocks.Earnings reports, takeover rumors,  and other market events are what drive volatility in individual stocks. An index tends to smooth out the wild ups and downs of the stocks it is made up of. Good liquidity is another plus point as it is popularly traded. It also has the advantage of leverage which leads to more efficient use of capital.

A trader who is 'afraid ' to trade in Futures - since each contract size is large - can trade in the Nifty Bees which is traded like a stock through the Dmat Account. It is a unit representing 1/10th of the Nifty value and is traded on decent volumes.Those who like diversification could also trade similar products like the popular Bank Nifty Futures, Gold Bees and Bank Bees.

The greatest fear a market participant has is of losing  when the market turns. Trading the Indices also makes hedging at turning points easy as Put and Call options are available and are very liquid too. Hedging is a popular options strategy. Options offer a reasonably priced, low-risk method of protecting against major losses on your equity investments.One more reason why investing / trading only in Nifty scores. This is so because buying a  Put Option in the Nifty may not protect your portfolio as much as an individual Put Option in the stock concerned. But when it comes to stock options, very few are liquid and are more costly as compared to those in the Nifty.


I am sure you must be convinced with my view.I bring out a daily Nifty and Bank Nifty Newsletter which will help you trade the Nifty and Bank Nifty. You may write to vipreetsafetrading@gmail.com for a subscription. We will soon be introducing Derivative strategies for the Nifty. Stay tuned.



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Happy Trading !!

Lakshmi Ramachandran
www.vipreetsafetrading.com