Thursday, April 23, 2009

Market Outlook

ONGC is referred in comments. Is it a selling opportunity ? My analysis suggests, it may be a sell. The stock has made bearish patterns at the top of the rally. But I do not give importance to such patterns since these can be false signals, easily fail. We have to follow momentum, which has beenup. Then, ONGC entered a small trading zone between 840 and 870. On Monday, we advised in our newsletter to clients to use ONGC as a leading indicator for the nifty. A close below 840 will be bearish for ONGC, and Nifty (since ONGC is an index heavyweight).

The Nifty has been making long shadows every day, suggesting confusion in the market. A small trading range between 3350 and 3500 was broken yesterday when the Index closed below 3350. A decline is expected. The key question here is: Is this a correction in an ongoing up trend, or the beginning of a new leg of the bear market ? A 'normal' pullback can take the Nifty down to 3150 support without changing the intermediate up trend. Therefore, at some point, when charts begin to give 'buy on dips' signals, we will take them.


Brij Mohan Kajaria said...


I have seen that when sellers are more than buyers in a particular stock than the price of the particular stock falls and when the buyers are more than the sellers than the price increase.

This I am following since many months. How can we utilise the same to adopt our trading strategy.

Plesae ellaborate the same as it will help us immensely.

wildeazoscar said...

Bara bhai (i.e. RIL is in comma).....

is the market not facing an imminent correction of 20% from tomorrow?


The bank of india also follows the same pattern which the ongc follows...we cant rule out that markt may not go again to 3500 level but there are many factors which make 3500 level pretty much conditional...ongc factor is one of them...870/880 looks a very good resistance at the same time for bank of india 265/270 looks a good resistance level or 5 to 10% correction is there deffinetely

Tushar said...

I wanted to know your intraday trade for today? As it was a tricky day to trade.
I think 15 minute rule gave a sell signal which was cancelled later.

So as you go with momentum, did you buy today then, if yes then with which rule?

Vicky said...

Thanks for your views sir.Thats great.Made an analysis in my blog.If have time please visit.