What a day of volatile trade on nifty and a huge fall wiping out 100 points .On the charts fibonacci levels shown are being respected by markets.If the downtrend continues then the next level to watch will be 5400 on break of 5500.The ADX has shown signs of weakness after being resilient for a long time.Positionally we are stopped out at 5565 with a loss of 20 points on spot nifty with entry at 5585.We will wait and watch for further clues from markets.Tomorrow's expiry can be volatile if today is any indication.The bias is negative below 5565 our stop loss.Till it does not cross this level do not think of longs.Do we reach the 5400 level is to be seen as per fibo levels.Intraday traders can look at levels given below on spot nifty to trade on 23.02.2012.
Spot Nifty levels for intra-day trade on 23.02.2012
No trade between 5487 and 5524(to avoid whipsaws)
Buy above 5524 with SL of 5504
for targets of 5542-5561(breakout level on the upside,add positions) 5580-5598-5617-5636-5655-5673.
No trade between 5487 and 5524(to avoid whipsaws)
Buy above 5524 with SL of 5504
for targets of 5542-5561(breakout level on the upside,add positions) 5580-5598-5617-5636-5655-5673.
Sell below 5487 with SL of 5507
for targets of 5468-5450(breakdown level on downside, add positions)-5431 -5413-5394- 5376- 5358-5340.
Happy Trading !
for targets of 5468-5450(breakdown level on downside, add positions)-5431 -5413-5394- 5376- 5358-5340.
Dear Sir,
ReplyDeleteWhat an interesting day indeed!!! I Was stunned with the ferocity of the market turning speed.However, was out of my 5600 ce with minor losses & watched the run down with shock.
Now to the point i would like to make is 5660 is 62% from 4531 to 6338. today nifty made a high of 5629.95 & low of 5491.35 and the next logical level is 5434.5 which is 50% of this range.the swing bottom is at 5323.
Could you please let me know if this rally from 4531 to 5630 a bear market rally or is this just a correction in the current rally and secondly if market closes firmly above 5660 for 3 consecutive days can we construe that to be bull rally if that happens.
As usual awaiting much needed Gyan from your side.
Regards
Vasanth
Hi VM,
ReplyDeleteI have stopped predicting the markets as we Gann Traders work on levels.Predicting markets requires courage but many times you are ridiculed by Mr. Market and you feel foolish and humbled.So to save embrassment I avoid it and keep my calculations to self nowadays.But I do use Fibonacci price and time analysis to time my trades.So anything below the 50% retracement will raise early bells for me i.e.5323.We may trace to 5400 which is logical if we move below 5500.Just see it 1000 points range 6300-5300-4300(not reached yet).To be precise it is 1800 points correction.So 6300-900=5400 is the level to watch as Gann stressed the 50% level.So above 5400 the next target will be 50% of 900 points i.e. 5400 = 450 = 5850.and below 5400 the targets could be 5400 - 450 = 4950.Presently we have achieved the 50% of 450 i.e. 225 points (5400+225=5625) a logical resistance.On cross of 5625 look for next target.Below 5400 look for 5400-225=5175.See this levels on charts it will make sense.Hope I have given some clues to ponder over.
Happy Trading!
Regards
K B Raut