What a trend day !
I've seen a lot of trend days, but very few which close above R4. This day joins the elite list of days which close above R2. They represent only 3 % of the days in the trading calendar.
So we had an open outside value, outside of range and the first 40 minutes told us that we would see a trend day today.
You cannot expect to see a more potent combination for directional bias, after two range bound days.
The market justified the significance of the open in the buyer activity which followed.
Thereafter it was just a case of holding on to the longs and not attempting any shorts.
We knew that the trend day would take care of all intra resistance including pivot points and the seller at 5550.
" No target is too big for a trend day ".
Let's look at the Bank Nifty.
Shai had mentioned in the weekly report on Saturday, how the Bank Nifty would have new momentum above 11039.
The high of the day was 200 points above that.
For tomorrow, the first hour of the day will be crucial.
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8 comments:
Hi Viren/Shai/Girish,
I am holding the following scrips in futures -
A] DLF @ 313.50.....CMP is 317.90
B] ONGC @ 1345.65.....CMP is 1339.00
C] HINDALCO @ 179.75....CMP is 179.35
May i please know the exit targets either for tomorrow or for the end of this week. I cannot afford to hold it beyond this week.
Thanks
J,
I presume you have longs.
DLF should come down tomorrow, so exit at open.
ONGC you can hold with a stop at 1325
Hindalco: your entry is not good, but if you can manage the position with a stop at 175, this could still give you returns.
Thanks Viren...I will exit DLF and Hindalco at the opening and continue to hold ONGC for a while
Off Topic :
Here is a very intersting piece from moneycentral about the vagaries of investing in the stock markets.In summary under current mkt conditions, it is difficult to have stock picking give you market beating results due to high corelations between stocks.
Read on- http://articles.moneycentral.msn.com/Investing/MutualFunds/mirhaydari-is-investing-in-companies-dead.aspx
Follow the links at the end of the article.
Thought provoking content.
Hi Viren / Shai / Girish,
Can you please check on Godrej Ind. charts, and advise..?
I did make money last month.
But this time got caught, when I shorted it @ 208.
I covered it today @ 214.50 :(.
Can you advise a strategy..?
Tnx for your advice, in advance.
GODREJIND has given a breakout today - after almost a year of consolidation.
The easiest thing to do when you short and know you are wrong is to reverse the position. By reversing your position at 214 you could have recovered 80% of your losses.
If it pulls back to 214-213 you can try a long - although it could just run up after a breakout.
Viren
Wat is AIAT can u briefly explain the system
Ram sreeram,
AIAT is "always in a trade".
We take positions for a swing, depending on the message the makt wants to give us.
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