Thursday, May 29, 2008

Expiry.... The saviour!

That is the single word that is giving us relief. Last day's so called white candle was not enough to break the body of the previous two black candles, so near term bearish sentiment will remain. Infact as always Jaggu is late to work so has not updated his TRIN -- so that part remains missing in my analysis today.

US closed green -- Asia started green and that helps come what may. Next as mentioned above the expiry helps and final rollover figures are yet to be seen. But remain careful as the Nifty comes close to 5050 levels -- as an absolute --5100 may be possible and that is the time you dump your 5000 nifty calls (if you hold them and take puts). The reversal should be there thereafter on the downside.

The reasons for being midterm bearish --
Firstly, TRIX finally touched down the midway marker and facing down. For so many days it held but even with yesterday white candle it gave up. It leads! so trust it.

Secondly, we tag along the lower side of bollinger band, - MACD and RSI down showing weakness.

Only StochRSI has crossed the 20 marker and says to build some positions (long) that is not supported by any other indication.

So the bottomline? Trade like a bull till closing -- take light positions and do not rollover till you are convinced about the direction the market is taking. Like I have been posting left right and centre asking for advise -- I am long in BHEL and would like to know if anyone has tracked this stock and can give his/her opinion about its future.


allvoices

8 comments:

Nifty said...

Hi

Regarding the nifty trading technique we will find time to chat online. i will update you on the time.

Good luck

suresh

Uma said...

cheema, looks like more downside will come??

Uma said...
This comment has been removed by the author.
Uma said...
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Uma said...

oops, sorry same message got posted multiple times

geniusjaggu said...

arre mian,
next support as per pivots is 4600...ROFLLLLLLLLLLLLLLLLLLLLL

Nifty said...

Hi pals

I have a contrast view on the bearish undertone on the market. I have updated my blog on this.. Pls post your comments on your views

geniusjaggu said...

arre mian,
oootho,wake up,subah hogayi maamu ;)

in 2 hrs mkt opens...be ready for weekend party :)