Sunday, September 18, 2011

Current Pattern in the Nifty


Rushabh Shastri said...

nifty should go to touch 20 days moving average near 5000,,,,put position also now concentrated more at 5000 after 4700,,,,current range looks 5000/5200

It's all about money, honey! said...

Dear Sir,

Hello sir, This is Chintan Dave. I have been a great fan of your very rational and disciplined analysis. I have met you a couple of times a year or two back in investor camps in Ahmedabad. It's always great to gain from your intellectual capital. I wanted your opinion on the analysis I have done. Also wanted to know how and where should I keep the stop.

Hindalco is getting interesting and i am long in hindalco now. Primarily for 3 reasons.
(1)It made a panic bottom of at 128.20 when nifty made its bottom of 4747. Then it sharply rallied till 163 levels. Then corrected and made a higher bottom at 139.2. And then again rallied to 145.1 and then consolidated for a day or two and then also filled the gap of 147-149 on friday and then corrected to 144.
Generally stocks fill the gap and then again go up.(I dont know its true always or not but have observed it in few stocks) Also if you draw the trend line from the lows - higher bottoms of 128.2 and 139.2 it comes at 141.5. Today it made a low of 141.1 and rebounded 1% from it and right now - trading at 142.55. Making it interesting to buy.
(2) Nifty is also staging a some bit of fight from today`s intraday low and its also up from it. it is definitely fighting 5025-5035 level.
(3) FOMC meeting in US is on 20th of this month which is 2days of trading leave for our markets. and Fed is likely to come out with some kinda liquidity aid for the markets.
Liquidity in the markets will only push the commodity prices higher and since hindalco being the commodity producer also high quality high beta stock - I would not be surprised if it goes back again and test its recent swing highs of 163 levels.

Sasi Uppuluri said...

Sir, what will be the target on the downside for a failed bullish head and shoulder pattern.

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