November 7, 2013

Market commentary

Markets closed in the red today... after 2 days of correction, this is the first day where we are seeing evidence of buying followed by selling at higher levels. This is reflected in the EOD candlestick chart (upper tail) and also intraday charts.

Formation of an upper tail after a mild correction is usually bullish.

Option writing points to support at 6000 and resistance at 6400.



For a trend reversal, we need close below 6080 spot followed by formation of a lower swing high.

Intraday charts show selling at higher levels. The horizontal lines refer to intraday supports and resistances formed break of which led to a new trend.


BNIFTY is trading close to trendline support... however I would look at close below 10680 as indication of trend reversal.


Breakouts today

Source: based on study of publicly available information (websites, media, tv etc) and charts

7-NOV-2013 5:15pm

Buy signals: TATASTEEL -

Sell signals: MCDOWELL - MCLEODRUSS - RCOM -

6 comments:

  1. in 5 min intraday chart DAMAGE already done if we wait for the CLOSE of CANDLE...
    Generally we r waiting for the CANDLE to close below the Previous support ..
    but in this situation we hurt badly
    what should we do in this TYPE of situation Please suggest

    ReplyDelete
    Replies
    1. If you are following intraday charts, then your trading strategy will take into account market moves. For eg., refer the chart above and you will see there was a buy signal when nifty crossed day's high (6270F, after 11 am) and then there was a subsequent sell on break of 6320-6300F (before 2pm)

      Delete
  2. Dear sir,
    1) How is it that u have posted this comentry at 3.33AM and a reader posted his comment at 8.13PM and u replied for it at 8.52 PM.
    2) Kindly suggest me a reliable real time candle bar chart which can post the candles without any delay. KINDLY REPLY.

    ReplyDelete
    Replies
    1. 1.Comment posted at 6.56 pm and not 3.33am - don't know how you arrived at this time.
      2.Visit icharts.in or globaldatafeeds.in

      Delete
  3. Thank u sir. In my email list it showed that time. Everyday i receive ur mail at around 3.30 AM only.

    ReplyDelete
    Replies
    1. OK... the email is sent via an automated program. The time I have set for sending is between 3 an d 5 am everyday in the morning. The post timing is something else and may change if a post is modified later on.

      The email is sent only when a new post is added.

      Delete

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