CHART TELLS THE MOVE BEFORE NEWS ARRIVES

Most of the time I have observed that the chart intimates the moves well in advance. When all the 50 scrips of Nifty was scanned yesterday, I could not find any big trigger for a big rally from nifty closed yesterday. All banking scrips looking bearish and even the non banking scrips are not showing any big leap forward.   The dip in scrips is reflected through IIP data - worst showing in 6 years where manufacturing contracts 1.2%, fall in capital good production by 21%, 

BIGGEST EVER DECLINE IN IIP SERIES.

This means :  Data shows no sign of recovery

                      GDP Growth unlikely to pick up in Q2.

                      RBI likely to cut rates again in December

                      More fiscal measures needed to lift the demand.

Now after seeing the above message you visit my previous post with my levels and close figures of nifty 50 scrips. You may hardly find few scrips above my levels that too not having weight in index. That was the reason for me to say for sure that there wont be immediate rally towards 11400.

Secondly, unless a double bottom is formed near 11090, there wont be a big jump.  Now most of the seasoned traders will agree to my view even though they are bullish till Friday close.

Now prepare yourself for a downside up to 11140, where value picks will be done by big investors or FPIs.  We should wait for 11140 for a meaningful long.

I can say with confidence that only HDFC bank results can lift the bank nifty by more than 1500 points and we can see 1260 by 24th expiry and 1320 by Month end expiry.

I have contributed to few forums like sgxnifty and nifty sgx on their request, but I do not find any value addition as everyone stick to their own convictions without knowing the levels and technical. I opted myself out of these forums to focus more on clients.

Soon I will be developing a tool in EXCEL where in you can key in the basic data on any scrip of your choice and that will give you the buy level, SL and Targets.  It can be used for positional as well as intra day trade  for index futures and stock futures and options.