I had written on Wednesday night about a break-out move in the Bank Nifty in this post here, and the above chart is testimony to that. I'll take a 300 point move in two days anyday. The best part of it is that it is not done yet.
My comment on "NAV Management" seems to have attracted a lot of attention, with even Shai dedicating a post to it.
The question I openly ask out is where are the sellers?
Since 5100 on the Nifty, I have not seen the seller make more that a 40 point move in the index. At the same time, the bulls have managed two 80 + point moves. The lack of sellers in the market was telling on Thursday, when we were below VAL for over 5 hours from 9.00 am to 2.00 pm and the sellers could manage only a 12 point move down during that period.Obviously the other party had to take over, and they certainly shook things up that afternoon.As can be seen in the chart,the next day on Friday they managed to hold their gains.This only points to higher prices ahead, but we'll see..
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5 comments:
GM All.
Opening is in value, and prices are curently above VAH at 5310.
Early signs of a trend day developing.
Buyers in control ( still)
Prices above value for 2 hours now.
No signs of seller intent in the markets.
Buy Nifty above 5319 for 5355-5360. Sl 5299.
There is nothing for the seller in this market...
BN above 9560 will give you 9650-9660 today.
Those in BN can keep a tight SL of 9550, only 10 points.
We are at a stage where we take what the market gives.
I will strongly advise against initiating new long positions in stocks or indices.
Also bring the Sl of Nifty to cost or near 5325.
We have had a good run with our concept of "NAV Management" and we'll play it safe now.
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