Wednesday, June 6, 2012

Nifty and other issues

The Nifty continues to be in a trading range. Trading inside a range is difficult in the best of times. Large positions are best avoided.

I feel that this range is developing after a sustained down move. It could be accumulation. The other side is also valid - that the range is a consolidation in an ongoing bear market.

The markets will tell us which of the  possibilities will work out. Fortunately, the trading range itself is a sign that one of the two will work out, we just have to wait to find out which.

In Comments, Vasant Kumar referred to head and shoulder patterns in M&M and HUL. There is a pattern in the daily HUL chart which  suggests some more downside. I could not locate the pattern in M&M. One such pattern is developing on the weekly, but I would not pay much attention to it since large time frame patterns are often ineffective. But, Dr Reddy's is also showing a distribution with a bearish head and shoulder.

The message coming out is: Overpriced, defensive stocks may be in for a correction.







4 comments:

NITIN DAMLE said...

Sir
Drreddy pattern tgt.1400?

Nitin Damle

Rakesh Shethia said...

I follow your views ardently. over a period of time, I have come to terms with your trading style. However, I am unable to understand when should the positions be carried forward and when should those be squared off intraday. Can you please suggest some good book that covers this topic in detail?

Thanks
Rakesh Shethia

Vasant kumar said...

Thanks Sudarshan ji

4209211 said...

Mr sukhani i m sorry after that comment i did not truned back but because of 2 reasons 1- my family is looking for a girl for me to get married and 2- i am down with viral fever and some stomach infection but from tuesday i will post my comments every day here at erly morning but wrt mkt
truly speaking i am myself not sure abt what can happen in 2 days because i am puzzled

see as per astro on monday we have
RAVI BUDDH combination which is good for mkt but as deg problem
we have retro venus15.17 jupi07.32 ketu10.04 and moon17.58 also if we take only jup ven and moon combination so we will se foll effect ultra positive but as venus is retro so only jupi + moon = ultr positive for mkt esp banks means we r abt to witness higher lvls come what may situation
now as per technicals what system i follow is
if we close below 50EMA on closing basis we r giving bearish symptoms mkt breadth is weak and we have formed evening star on daily charts of major banks like Bank nifty itself and ICICI, SBIN, AXIS, and nifty also
stocastic (5,3,3) is also going down on both 4hr and daily tf what i follow as sell signal also yester day we saw a doji with today closing below yesterday low so as per me all is red as per what limited technical knoledge i have but all is ultra green as per whatever astro knoledge i have
so what is my asumption we may see a bear trap tomaro and we have to close higher if astro has to win but if we close on red above 5000 then too i am upbeat for monday considering it as a super bulish moove ke pehle ki dip thi and be bulish
i hereby please request to a super knoledgeble and suessful professtional technical analyst like u Mr Sukhani to please guide me and show me path weather what may happen and what r their guess on tomaro and on monday
truly speaking no big talk i dont know what may happen friday and monday sets wait and watch
Mr Sukhani if u r reading this so please make me realise weather my comments r reaching till u or not