Today was just a time pass day. We opened gap down yet again and failed to fill the gap. Nifty opened inline with weak global markets. We were in a range today. Though the bears were strong for most part of the day but I guess neither side was willing to take any position aggressively as both Dow and FTSE are closed today on account of public holiday. On the dailies we have broken and closed below the 50 DMA. Incidentally we are also at an important trend line support. Tomorrow the bulls might try to reclaim the 50 DMA. The flip side is immediately above the 50 DMA is the gap area (4915-4945) which would act as strong resistance.
One more thing I have noticed is that our entire so called uptrend from mid march onwards had the ADX (marked in red rectangle) going down to a trend less state. It means that this uptrend had no real strength. Who knows ADX will start showing strength when we begin to fall??? Yeah Fall! We have run out of good news now. The earnings season is over and Inflation is not making thing easier for us. Speaking of Inflation here is an excerpt from today’s Economist”
"You must do the things you think you cannot do."
Eleanor Roosevelt
A very nice analysis! Specially trendlines are drawn with great accuracy! It is very helpful!
ReplyDeleteKeep Posting, I am a regular reader
Interesting, Manoj, thanks for the analysis! Btw, where do you get real time data from?
ReplyDeleteAlso it's a little off but the 5000 put still holds the max open interest, and option data shows that a close between 4950 and 5000 is more likely (i.e. most option buyers will hurt there) Just another thing to add to the mix :)
deepak shenoy
ReplyDeleteHi and thanks for your appreciation.I use a utility by investbulls for my intra day data.
Yups your analysis of open interest holds ground...4950 we might close there, as that also is a potential resistance for now.Any way Que Sera Sera!!! Just wish we are on the right side!:)