07th may 2009...

as per previously posted nifty chart, the breakout tgt range mentioned is nearly done. the support area is 3480-3517. although nifty suddenly came down in intraday yday due to negative div and profit booking but has not damaged charts much, we will try to book part of the remaining 50% longs. nifty perhaps will still attempt to move toward the imp 3800-3820 resis area in coming days, beyond which at present looks a bit difficult.

a double whammy...

:)

news: h1n1 virus spreads alarmingly outside of mexico and texas, united states caps visa limit to indian s/w ppl and also denies tax sops to co's hiring outside US thereby affecting outsourcing I.T. jobs to countries like india, china etc.

(cartoon source:ab)

bulls on the rampage...

taking cues from overseas mkts, it were the bulls who took charge right from the beginning with a large opening gap and kept mkt firm throughout the day.

reason? huge cash buying to the tune of 1400 cr(cash prov.) and 1000 cr in f&o segment by the fiis.

diis were infact net sellers in cash.

this also caused another breakout from congestion pattern on upper side on the nifty eod price charts, the tentative tgts and sl's etc is as shown on the chart above.

mkt ahead...

just as it was said that "profit booking is due", we got a drop down on 28th april 2009 and for the first time triggering the intermediate term trailing profit stop(tsl) on closing basis, therefore as a good trading discipline 50% of the longs were to be covered/profit booked. pls remember the positions are supposed to be long from 2600 lvls, enough hint was given here about the same.

strategy is now the rest 50% are to be held with sl of 3296 and any upsides upto 3734-3800(strong resis) can be used for profit booking in stocks and nifty fut.

fiis are still buying in cash and f&o so as of now there's not much of panic or bearishness as such.

mkt is still ranged, but now we can see some negative div appearing on s&p500(us) and dow jones charts which could lead to some profit booking in those mkts although trending upward, that may possibly impact our mkt also.

since nifty is ranged a sort of short to medium term congestion type pattern is emerging on eod charts waiting for direction for break out or breakdown.