Friday, August 26, 2011

Watch 4800 for the Nifty

While the market is in a downtrend, at least for now, it appears that 4800 seems to be holding. A close below 4800 will resume the down move.

HDFC Bank weekly chart was given. While the neckline has been violated, yes, we have to wait for friday to confirm if the weekly close remains below the neckline. Thanks to DK for pointing this out.

Please undertand once again the difference between analysis and trading tactics. The analysis gives us a view. Now, trading methods provide the tools for executing the trade. Theoritically, the stop loss on the HDFC Bank pattern is the right shoulder. But, it is possible to keep a stop loss above this week's high.

Yes, my view remains that Gold and Silver are in their bull markets. Dips are buying opportunities. Both metals have become volatile. So, you need to manage your trading volumes.

Quickly added: from NSE website:

NSE to launch Global Indices on Monday, 29th August, 2011

The National Stock exchange is launching derivative contracts on the world ’s most followed equity indices, the S&P 500 and the Dow Jones Industrial Average from Monday, the 29th of August.

This is the first time that derivative contracts on global indices are being launched in India. This is the also the first time in the world that futures contracts on the S&P 500 index are being introduced and listed on an exchange outside of their home country, USA. The new contracts will include futures on both the DJIA and the S&P 500, and options on the S&P 500.

2 comments:

Nirav said...

Dear Sir,

What is the trading time of Global Indices and How it impact on us or US market?

Amarrdiip Kumaarr said...

sir, in this free falling market there are many stock in intraday fall whole day in 45 degree down slope, never came up.

how one can approach such stock, like what should be stoploss, risk reward etc. to be places?