These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
The Bull Run still remains intact. A new high has again been achieved.
A convincing support now lies at the support zone marked out on the chart. The Nifty still has maintained its upward trend.
On the other hand, sector indices like the Bank Nifty and the CNX IT show some signs of weakness. Leading us to believe that there could be a minor correction in the Nifty. The correction could be enough to allow bulls to believe that the bull run is over. In that case, the support level of 3970 will be tested.
If I was trading this market, I would maintain a stop of around 3960. If I was to re-enter this market, I would look at 3970, as an entry level, with a strict stop. In any case, the technicals still suggest that we could expect a target of 4120.
The Bull Run still remains intact. A new high has again been achieved.
A convincing support now lies at the support zone marked out on the chart. The Nifty still has maintained its upward trend.
On the other hand, sector indices like the Bank Nifty and the CNX IT show some signs of weakness. Leading us to believe that there could be a minor correction in the Nifty. The correction could be enough to allow bulls to believe that the bull run is over. In that case, the support level of 3970 will be tested.
If I was trading this market, I would maintain a stop of around 3960. If I was to re-enter this market, I would look at 3970, as an entry level, with a strict stop. In any case, the technicals still suggest that we could expect a target of 4120.
5 comments:
comment link is working now, i guess problem at my end !
posted comments in yesterdays column !
Thanks again !
reg
ketan
Dear Dusant,
I would like to know PUT CALL RATIO of volumes is better or Open intrest.
Further please tell me how to trade with it ? How much ratio states bullishness and how much bearishness.
Hello Anonymous.
If you are looking for a "sure shot" formula for PCR, forget it.
Since the last decade, analysts are still struggling with the VIX in the USA and not able to figure it out still.
Ultimately, it boils down to one thing, are you over-leveraged being bullish or bearish.
If the market is overleveraged either bullish or bearish, you can be sure that the market is going to squeeze the overleveraged players.
My very humble opinion.
Dusant
Dear Dusant ,
Thanks for the reply.
I know there is nothing foolproof in this market. Every indicator and pattern and techniques has its limitations. They fail many times. So is with PCR.
My question was that PCR of volumes is better than OI ? Which one in is better ,PCR of OI or volumes, which one gives better insigth ,further how mucy ratio of PRC indicates bullishness and how much PCR indicates bearishness ? I know the PCR is not sureshot.
Hello Anonymous,
I used to calculate the PCR of both, the Rupee Value as well as the Volumes. The Rupee Value PCR helped me to understand how leveraged the market is.
The Rupee Value PCR is calculated by the current close with the OI.
Dusant
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