Nifty rallied sharply as expected like as we mentioned in the column. It index gave a good run yesterday.Still people asking can we short @ higher levels, it can be low risk high probability trade but trend is our friend live with the trend. Its a buy @ dips market. And still our falling wedge target of 4600 not done, and also yesterday it achieved our 100% retrace target of 4480 which we mentioned in 16th July column. Many people missed this rally thinking market will fall as eclipse is coming, but as mentioned in yesterday we need to skip that and make use of it. 4600 CE and 4200 PE added More Open Interest suggesting 4200 will give support.FII not giving up they are net buyers ahead of DII's. AS I used to say always FII's are powerful.
INSTITUTIONAL ACTIVITY :: FII (+563 cr) ::: DII (+152 cr)
- Put call ratio @ 0.97 suggest writing in puts.
- Nifty ended in premium of 7 points
- Us markets closed positive by 1%
- Nifty trading above 50 SMA
- Nifty will open flat to negative
- RSI2 @ highly Overbought.
- Advance Decline was good
Nifty falling wedge pattern which we spotted was successful still 100 points more to its target. If its a gap down I will go long again seeing the trend for intraday. 4528 is a hurdle today. RSI2 @ 98.5 highly overbought level. Here I try to convey some message People think market will fall when its in Overbought. I will spot in the below chart how market rallied when its in Overbought level.So Trend need to checked.4390 Is immediate support in nifty spot. MACD finally crossed the zero line with increase in volume.
20/7/09 Heat map
Levels ::
Nifty Fut supp @ 4449 :: Res @ 4571
4464 - 4489 - 4530 - 4556
Calls ::
BUY ABAN @ 944 SL 936 TGT 961 - 977 - 989.
1 comment:
Great analysis on OB, Thanks for your views.
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