Monday, December 28, 2009

Gold is Likely to start a Long Term Correction

The present bull run is likely to peak out with in few months. Going by the price pattern it seems, it is likely to be in the fifth wave in Elliott Wave Principle's terms.

Sentiment indicates that everybody is bullish on Gold, which is the right atmosphere for a peak.

Volumes have increased, indicating distribution is taking place.

The presented graph could give a clue of the future course of Gold.





Sunday, December 27, 2009

Technical Analysis Tutorials-Contracting Running Triangle

Running triangles are of two types. One is contracting running triangle and the other is expanding running triangle.

Contracting triangles normally occur before a big move in the upside.

Contracting triangles are followed by a straight line upmove or an expanding upmove.

Contracting triangle has five legs. The first leg is the most volatile and last leg is the least volatile leg. Normally, the final leg would taper off towards the end of the triangle.


Rising wedges are sometimes mistaken for running triangle. But both are different as far as the break out is concerned.

In a running triangle, the base line will not be violated. But in a rising wedge, the base line may be violated.




Sunday, December 20, 2009

Join Our Conversation in Twitter


Tuesday, December 15, 2009

Technical Outlook, 15 December

Nifty (spot) 5105.70

Nifty Intraday levels and range


Technical View of Nifty Futures, 15 December

Nifty Futures 5102.90

Nifty Futures Intraday levels and range

Technical View of Sensex, 15 December

Sensex (spot) 17087.03

Sensex Intraday levels and range

Trading Calls of Stocks, 15 December

Reliance
The level 1090 is crucial for short term. If it sustains above 1090, then it is likely to rally towards 1150.

Technical View of International Markets-Dow

Dow 10501.05


Short term Outlook


The Short term outlook of Dow is looking weak and it is trading in contracting triangle for the past 9 months. It seems to have a maximum upside potential of 10700 and it is likely to top out between 10500 and 10700.


 Long term Outlook of Dow


The present rally from the low of March 2009 seems to be corrective and it is likely to be followed by a deep correction 

Friday, December 11, 2009

Thursday, December 10, 2009

Wednesday, December 09, 2009

Tuesday, December 08, 2009

Monday, December 07, 2009

Friday, December 04, 2009

Thursday, December 03, 2009

TECHNICAL OUTLOOK, 03 DECEMBER



Nifty (spot) 5118.55


Nifty Intraday trading levels and range


Today, if Nifty sustains below 5120, then it could test 5080 and below that level, it could test 5010.


Instead, if Nifty trades above 5120, then it could test 5150 and that level, it could test 5200.


Nifty is likely to form a lower top below 5180. Instead, if it is broken, then it could move 5300-5350 levels.


Nifty intraday Trading Strategy


For intraday, the crucial level is 5120. Trade short below this level and trade long above this level.

Nifty Positional Trading Strategy

Positional traders can initiate shorts if it fails to sustain above 5010 for a target of 4500 with a stop at 5010 and trade long above 5010 for a target of 5110 with a stop at 5010.


Short term Technical View of Nifty




Nifty is likely to form a lower top below 5180. If the level, 5180 is broken, then it could move towards 5300-5350 region.








Medium term outlook of Nifty dated on 20 May 2009


The medium term outlook of Nifty would remain bearish if it fails to sustain above 5200. Nifty is likely to bottom out in the medium term at 2000-2200 levels in coming months and if it fails to sustain above this level, then it is likely to decline below 2000 levels.










Long term outlook of Nifty dated on 30 June 2009


The long term outlook of Nifty is looking bearish and it seems that Nifty is likely to bottom out in 3 years.










Short term trading calls of Stocks for spot market






Reliance (spot)


The level 1090 is crucial for short term. If it sustains above 1090, then it is likely to rally towards 1150.


Instead, if it fails to sustain above 1090 in coming trading sessions, then it is likely to turn weak and it could decline towards 1000 initially.


Trading Strategy for Reliance


For intraday, the crucial level is 1090. Trade long above these levels and trade short below these levels.


Positional traders can initiate longs if it sustains above 1090 for a target of 1150. Initiate shorts if it fails to sustain above 1090 for a target of 1000.






SBI (spot)


The crucial level for the short term for this scrip is 2300. If it fails to sustain above 2300, then it is likely to turn bearish and in the down side it could test 2240 in coming trading sessions.


Instead, if it sustains above 2300, then the short term trend would turn bullish and in the upper side it is likely to move towards 2380.




Trading Strategy for SBI


For Intraday, the crucial level is 2300. Trade long above this level and trade short below this level.


Positional traders can initiate shorts if it fails to sustain above 2300 for a target of 2240. And initiate longs if it sustains above 2300 for a target of 2380.






Rcom (spot)


The level 185 is crucial in the short term. If the scrip trades above this level, the short term would turn bullish and in the upper side it could test 195.


If it fails to sustain above 185, then the trend would turn bearish and in the downside it is likely to decline towards 130 initially.




Trading Strategy for Rcom




For intraday, the crucial level is 170. Trade long above this level and be short below this level.


Positional traders can initiate shorts if it fails to sustain above 185 for a target of 130. Initiate longs if it sustains above 185 for a target of 195.










Icici Bank (spot)


The level 905 is crucial for this scrip in the short term. If it sustains above this level, then it is likely to see a rally from these levels towards 930.


Instead, if it fails to sustain above 905, the short term trend would turn bearish and in the downside it is likely to decline towards 830 initially.






Trading Strategy for Icici Bank


For intraday, the crucial level is 905 . Trade long above this level and be short below this level.


Positional traders can initiate shorts if the scrip fails to sustain above 905 for a target of 830. Initiate longs if it sustains above 905 for a target of 930.








Tata Steel (spot)


The crucial level for the scrip in the short term is 590. The trend would remain bearish for this scrip if it sustains below 590 and in the down side, it could test 500 initially.


If the scrip sustains above 590, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 620.




Trading Strategy for Tata Steel


For intraday, the crucial level is 590. Trade long above this level and be short below this level.


Positional traders can initiate longs if the scrip sustains above 590 in the upside for a target of 620. Short if it fails to sustain above 590 for a target of 500.

Wednesday, December 02, 2009

TECHNICAL OUTLOOK, 2 DECEMBER





Nifty (spot) 5121.55






Nifty Intraday trading levels and range




Today, if Nifty sustains below 5080, then it could test 5010.


Instead, if Nifty trades above 5080, then it could test 5150.




Nifty is likely to form a lower top below 5180. The next crucial level is 5010. Correction is likely to continue if it fails to sustain above 5010 .










Nifty intraday Trading Strategy


For intraday, the crucial level is 5080. Trade short below this level and trade long above this level.




Nifty Positional Trading Strategy




Positional traders can initiate shorts if it fails to sustain above 5010 for a target of 4500 with a stop at 5010 and trade long above 5010 for a target of 5110 with a stop at 5010.






Short term Technical View of Nifty




Nifty is likely to test 4500 initially in the downside, if it fails to move above 5010 in coming trading sessions. And if it trades above 5010, then it could test 5110 levels.








Medium term outlook of Nifty dated on 20 May 2009


The medium term outlook of Nifty would remain bearish if it fails to sustain above 5200. Nifty is likely to bottom out in the medium term at 2000-2200 levels in coming months and if it fails to sustain above this level, then it is likely to decline below 2000 levels.










Long term outlook of Nifty dated on 30 June 2009


The long term outlook of Nifty is looking bearish and it seems that Nifty is likely to bottom out in 3 years.










Short term trading calls of Stocks for spot market






Reliance (spot)


The level 1090 is crucial for short term. If it sustains above 1090, then it is likely to rally towards 1150.


Instead, if it fails to sustain above 1090 in coming trading sessions, then it is likely to turn weak and it could decline towards 1000 initially.


Trading Strategy for Reliance


For intraday, the crucial level is 1065. Trade long above these levels and trade short below these levels.


Positional traders can initiate longs if it sustains above 1090 for a target of 1150. Initiate shorts if it fails to sustain above 1090 for a target of 1000.






SBI (spot)


The crucial level for the short term for this scrip is 2240. If it fails to sustain above 2240, then it is likely to turn bearish and in the down side it could test 2050 in coming trading sessions.


Instead, if it sustains above 2240, then the short term trend would turn bullish and in the upper side it is likely to move towards 2300.




Trading Strategy for SBI


For Intraday, the crucial level is 2240. Trade long above this level and trade short below this level.


Positional traders can initiate shorts if it fails to sustain above 2240 for a target of 2050. And initiate longs if it sustains above 2240 for a target of 2300.






Rcom (spot)


The level 185 is crucial in the short term. If the scrip trades above this level, the short term would turn bullish and in the upper side it could test 195.


If it fails to sustain above 185, then the trend would turn bearish and in the downside it is likely to decline towards 130 initially.




Trading Strategy for Rcom




For intraday, the crucial level is 170. Trade long above this level and be short below this level.


Positional traders can initiate shorts if it fails to sustain above 185 for a target of 130. Initiate longs if it sustains above 185 for a target of 195.










Icici Bank (spot)


The level 905 is crucial for this scrip in the short term. If it sustains above this level, then it is likely to see a rally from these levels towards 930.


Instead, if it fails to sustain above 905, the short term trend would turn bearish and in the downside it is likely to decline towards 830 initially.






Trading Strategy for Icici Bank


For intraday, the crucial level is 865 . Trade long above this level and be short below this level.


Positional traders can initiate shorts if the scrip fails to sustain above 905 for a target of 830. Initiate longs if it sustains above 905 for a target of 930.








Tata Steel (spot)


The crucial level for the scrip in the short term is 550. The trend would remain bearish for this scrip if it sustains below 550 and in the down side, it could test 500 initially.


If the scrip sustains above 550, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 580.




Trading Strategy for Tata Steel


For intraday, the crucial level is 550. Trade long above this level and be short below this level.


Positional traders can initiate longs if the scrip sustains above 550 in the upside for a target of 580. Short if it fails to sustain above 550 for a target of 500.

Tuesday, December 01, 2009

TECHNICAL OUTLOOK, 01 DECEMBER




Nifty (spot) 5032.00


Nifty Intraday trading levels and range



Today, if Nifty sustains below 5010, then it could test 4950 and below that level, it could test 4870.
Instead, if Nifty trades above 5010, then it could test 5050.


Nifty is likely to form a lower top below 5180. The next crucial level is 5010. Correction is likely to continue if it fails to sustain above 5010 .


Nifty intraday Trading Strategy


For intraday, the crucial level is 5010. Trade short below this level and trade long above this level.

Nifty Positional Trading Strategy

Positional traders can initiate shorts if it fails to sustain above 5010 for a target of 4500 with a stop at 5010 and trade long above 5010 for a target of 5110 with a stop at 5010.

Short term Technical View of Nifty

Nifty is likely to test 4500 initially in the downside, if it fails to move above 5010 in coming trading sessions. And if it trades above 5010, then it could test 5110 levels.


Medium term outlook of Nifty dated on 20 May 2009


The medium term outlook of Nifty would remain bearish if it fails to sustain above 5200. Nifty is likely to bottom out in the medium term at 2000-2200 levels in coming months and if it fails to sustain above this level, then it is likely to decline below 2000 levels.



Long term outlook of Nifty dated on 30 June 2009


The long term outlook of Nifty is looking bearish and it seems that Nifty is likely to bottom out in 3 years.



Short term trading calls of Stocks for spot market

Reliance (spot)


The level 1090 is crucial for short term. If it sustains above 1090, then it is likely to rally towards 1150.


Instead, if it fails to sustain above 1090 in coming trading sessions, then it is likely to turn weak and it could decline towards 1000 initially.


Trading Strategy for Reliance


For intraday, the crucial level is 1065. Trade long above these levels and trade short below these levels.


Positional traders can initiate longs if it sustains above 1090 for a target of 1150. Initiate shorts if it fails to sustain above 1090 for a target of 1000.



SBI (spot)


The crucial level for the short term for this scrip is 2240. If it fails to sustain above 2240, then it is likely to turn bearish and in the down side it could test 2050 in coming trading sessions.


Instead, if it sustains above 2240, then the short term trend would turn bullish and in the upper side it is likely to move towards 2300.

Trading Strategy for SBI


For Intraday, the crucial level is 2240. Trade long above this level and trade short below this level.


Positional traders can initiate shorts if it fails to sustain above 2240 for a target of 2050. And initiate longs if it sustains above 2240 for a target of 2300.



Rcom (spot)


The level 185 is crucial in the short term. If the scrip trades above this level, the short term would turn bullish and in the upper side it could test 195.


If it fails to sustain above 185, then the trend would turn bearish and in the downside it is likely to decline towards 130 initially.




Trading Strategy for Rcom

For intraday, the crucial level is 170. Trade long above this level and be short below this level.


Positional traders can initiate shorts if it fails to sustain above 185 for a target of 130. Initiate longs if it sustains above 185 for a target of 195.



Icici Bank (spot)


The level 905 is crucial for this scrip in the short term. If it sustains above this level, then it is likely to see a rally from these levels towards 930.


Instead, if it fails to sustain above 905, the short term trend would turn bearish and in the downside it is likely to decline towards 830 initially.


Trading Strategy for Icici Bank


For intraday, the crucial level is 865 . Trade long above this level and be short below this level.


Positional traders can initiate shorts if the scrip fails to sustain above 905 for a target of 830. Initiate longs if it sustains above 905 for a target of 930.



Tata Steel (spot)


The crucial level for the scrip in the short term is 550. The trend would remain bearish for this scrip if it sustains below 550 and in the down side, it could test 500 initially.


If the scrip sustains above 550, then the scrip is likely to turn bullish in the short term and in the upper side it could rally towards 580.




Trading Strategy for Tata Steel


For intraday, the crucial level is 550. Trade long above this level and be short below this level.


Positional traders can initiate longs if the scrip sustains above 550 in the upside for a target of 580. Short if it fails to sustain above 550 for a target of 500.




Contact:
9381203517
sathiamoorthyd@gmail.com
Yahoo Messenger Id - sathiamoorthyd@yahoo.com
Chennai