Archive for March, 2010

A neutral day to end the financial year…

Wednesday, March 31st, 2010

Markets witnessed a good correction yesterday to retest the levels of 5260 where it ended the march derivatives series. Today it is likely to be a neural day with a close around yesterday’s close.
The high of the present bull run has not yet been tested and it is likely that the markets might rally upto 5370 in the near term before any strong correction sets in.
The 20 DMA on extrapolation will be around 5209 levels tomorrow and a retest of that will give strength for the additional bull leg going forward.
Resistance levels : 5268, 5283, 5296

Support levels : 5256, 5243, 5225

Happy Trading

Consolidation today after closing at year high…

Tuesday, March 30th, 2010

Markets made a new year high close yesterday, closing above the 5300 mark after hitting the resistance level of 5330.
The rally can test the levels of 5370 which will offer a very strong resistance and markets likely to correct from that level.
There could be couple of more sessions where markets could be in range. As of now 5256 level acts as a strong support.
Resistance levels : 5311, 5336, 5370

Support levels : 5294, 5275, 5256

Happy Trading

Range bound market till the financial year end…

Monday, March 29th, 2010

Nifty closed at previous year high close on friday at 5282 levels which was earlier made on 6 Jan 2010.
It now looks like the markets to fall back in to a tight range for the remaining three sessions in this financial year and a strong move to follow after that.
The 20 DMA will be at 5200 levels in a couple of days and will provide the support moving forward. A consolidation and a retest of 5200 levels would give the rally added strength and any upmove before that would be vulnerable for a strong correction at this stage.
The weekly charts indicate a strong resistance at 5370 levels and it is unlikely for the markets to move past that level in the near term.
The levels to watch out for the week. Resistance at 5311, 5370 and Support at 5187 and 5137
The levels for today
Resistance levels : 5294, 5311, 5336

Support levels : 5275, 5256, 5235


Happy Trading

A totally bull controlled series…Momentum to continue…

Friday, March 26th, 2010

It was end of another derivative series yesterday and bulls totally dominated the whole series including the expiry and pattern-wise took it to the close mentioned previously.
Now that a new series has begun and bulls are in upperhand, will there be a momentum run breaking the year high. As of now it looks like another leg of consolidation is getting over and market has the potential to reach 5366 levels also in the short term. 5163 level should act as a strong support going forward.
Resistance levels : 5275, 5311, 5338

Support levels : 5245, 5224, 5203

Happy Trading

Monthly Chart – March 2010

Thursday, March 25th, 2010


Can bulls give the final push for the expiry ?!

Thursday, March 25th, 2010

Throughout this series, it has been bulls completely dominating the markets and being the expiry of March derivative series, pattern-wise bulls are placed on strong ground and are likely to push markets for a higher close.
On the contrary, in the past sessions, there were heavy unwinding seen in 5300 put, as well as 5200 puts indicating some amount of weakness. If the markets are to be pushed higher, there might not be any reason for 5200 puts to unwind. The overall volume PCR and PCR indicates a neutral to a bullish move. The transaction on 5200 calls and puts far exceeded the amount seen for previous expiries and points to a close around 5206 levels.
Pattern-wise, bulls can take market to a close of around 5256 levels.
Overall, it is better to wait for the intraday data on the open interests around mid-day to strategise and trade the expiry rather than positioning around the open itself.
Will be updating the trading calls around noon today.
Resistance levels : 5235, 5256, 5275

Support levels : 5218, 5206, 5177

Happy Trading

Bulls to take control for the remaining two sessions into expiry…

Tuesday, March 23rd, 2010

Yesterday markets had a strong gap down and then bulls tried to push the markets beyond 5250 levels which acted as a strong resistance multiple times and bears took over and closed the markets near another key level of 5206.
The overall undercurrent is bullish and it could be the the turn of bulls to take control in the remaining two sessions for the expiry including today.
The options data is not favouring bulls or bears at this juncture and the volume PCR is remaining neutral. Overall 5200 call and put saw heavy transaction yesterday and 5300 puts saw unwinding.
Resistance levels : 5219, 5250, 5275

Support levels : 5189, 5175, 5163

Happy Trading

Markets to correct, but bulls to control this expiry…

Monday, March 22nd, 2010

Markets on friday reached and closed at a new high for the series. This week being the derivative expiry week, would see markets back under the control of bulls, though today markets could open gap down and test sub 5200 levels.
Throughout the series bulls have dominated completely and are likely to take upperhand on any correction and push markets back into their territory.
The levels to watch out for the week are – resistance levels 5275, 5335, 5365 and support levels 5196, 5134, 5085
The key levels for today remain the same.
Resistance levels : 5275, 5307, 5335

Support levels : 5239, 5224, 5175

Happy Trading

Bulls positioned strong…A move to test higher levels …

Friday, March 19th, 2010

Finally bulls were able to break the 5250 barrier also and also almost closed near that level by another powerful move towards the end from the
day’s low yesterday.
Bulls seem to be positioned strong enough to retest the year’s high level of 5311 and also break it in the coming days. The strong consolidation has strengthened bulls stance.
The options data is also suggesting an upmove and yesterday the open interest PCR has reached more than 2 indicating strong bullishness. Also the volatility is still at its multiple year lows suggesting further expansion and a strong one sided move.
Resistance levels : 5275, 5307, 5335

Support levels : 5239, 5224, 5175


Happy Trading

Nifty 17 Mar 2010

Thursday, March 18th, 2010

- Happy Trading