Wednesday, September 14, 2011

The Nifty gets a floor

With two down days, on Monday and Tuesday, the Nifty found support just above 4900.  The Nifty is in some kind of a range between 4900 and 5100. This could mean a rally towards the 5100 resistance level. For swing traders, it is possible to buy sept calls with a stop below 4900. I continue to maintain short positions using October options. These positions will not be affected by the short term trend of the Nifty. For these day trades / swing trades I take positions in the September series.

Yesterday, Tuesday, Gold moved in a narrow range, suggesting a period of contraction. As I have explained in this blog many times, periods of contraction are followed by expansion. This narrow range is developing inside a small range with resistance at 28400 and support at 27500. These are levels for the swing trader.



6 comments:

guy9700 said...

hello sir sudarshan have you quit etnow channel , if yes which other channel have u joined

shashwat said...

sir which oct option you trade

abishekrav said...

sir u ve always used the term imminent break out on tv..are there ways to find out during a consolidation in which way a break out would materialise using technicals.to me gold and silver are pressing hard to break out on the upside. is my prognosis right despite a lot of contrarian views on the blog regarding its topping out process

sudhin said...

Is SBI forming an inverted H/s pattern with the head @ 3515 and shoulder @ 2512 on the weekly time frame with a probable target of 1516? or is it better to wait for the pattern to complete? Also is it better to buy sbi to hdfc as this has fallen more? Thanks.

SWEETY said...

Sir,

4900 is **pseudo** support.

It's like the trick to catch the elephant, where a very big hole is dug beneath the surface that is covered with weightless bamboo sticks & leafs so as to appear as if it is a normal surface.

But when the elephant steps on it... we all know what will happen.

4000 is the stop.

The real consolidation will happen in between 3600 - 4000 - 4500 for a considerable period of time. Thats the ideal time to go for shopping.

smartmoney said...

Hello sir r u no more on ETNOW. If yes then which channel we can be benifited from ur views