Thursday, September 25, 2008

Ready for an intermediate up trend ?

The Nifty was fairly volatile on the FNO settlement day. The Index fell to a low of 4078 before recovering to close at 4107.

While the market remains inside a range, there is a suggestion that the Index finds support at lower levels. These levels are somewhere around 4070. The Nifty did go to touch this support today, but rallied to close higher.
If 4070 support holds, then we could be looking at a rally that touches the 4300 - 4400 zone. Assuming that the support breaks down, we are faced with another decline to 3800 where support comes in.

The scenario then is:

Assume the intermediate down trend is getting over. Look for a rally to 4300 - 4400 levels. If the support at 4070 breaks down by a close below it, then stay away from long positions.

With all of this analysis, the Nifty remains inside a large trading zone - between 3800 and 4650. Eventually, a move out of this zone will determine the long term trend for the Market.

4 comments:

RAVI said...

technicaaly a gap on 19/9 from 4073 to 4146 and todays low of 4077 indicates that as per gap theory we can go long with 4073 as stop secondly a gap from 4216 to 4099.90 on 16/9 in combination with the above said gap can it be seen as island reversal???? if so when is it confirmed or conssidered failure please comment

Hemanta Gogoi said...

As a trader we must stop looking at the Dow. Today dow is up by 2 percent. Whatever it is technicals say India will go down tommorrow. Let us see who is right or technicians or copy cats!

ggg said...

it is not a uptrend

Anjan said...

Sir,

Being a student of “ thought, belief and philosophy” of technical analysis, if I want to share my experience and thoughts with you, do you response? If yes, how?

Thanking you,

Anjan.