"October is one of the peculiarly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August, and February." - Mark Twain
October lived up to its reputation and Yes Halloween did scare or rather spook the markets the world over! Lets see where are Nifty stands this we(a)k! So far a nice 13 week rally is followed by a two week downfall. From the daily chart below (left) one can see we are at where it matters the most; the previous highs (old resi’s turn to supports) and a short term TL support, the hitch, unfortunately we are also below, both the 20 and the 50 periods MA’s. The market is turned OS, so a bounce back from here is not ruled out!
The chart above to the right is the hourly; Nifty can give a good intraday bounce, if it consistently infact let me add convincingly trades above 4750, to head for 4810/4850!
Hi Manoj
ReplyDeletePerfect interpretation old resistance turning support and TL support on downside for tradeable bounce. Looking at pivotals i am circumspect which sector going to pull nifty up. Below 20/50ma is cause of concern and shortable on bounce to 50ma with TREND SL being above 50ma. I am of the opinion TL WILL NOT SUPPORT THIS TIME AROUND
regards
naresh
Monoj Hi!
ReplyDeleteGood analysis as usual. Lets see how it turns out.
Regards
Mayur
Naresh Hi
ReplyDeleteTo quote you "old resistance turning support and TL support on downside for tradeable bounce"...Yes its the tradeable bounce I am looking at. As regards to being bullish again I need to see 4900/50 taken out!
Cheers!
Mayur Hi
ReplyDeleteLong time no see!!!!
Cheers!