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Monday, December 26, 2011

Nifty trade--The PLAN( update --5th Jan---Change of PLANs)

UPDATE :::3:30 PM -------SQUARE OFF ALL LONGS. AUD/USD has broken down . Next week we will see down move. Going  SHORT . Next week we might revisit 4520 area agin.
Update -5th Jan .

Hi everyone .  

The markets is  not as strong as I would have liked . The wolfe wave target shown by PINK LINE  given in the chart below should be met . But the question is HOW. It looks like we will go down first and then go for a rally . As we can see in the chart below , the upper level of BOLLINGER band has come down .Nifty wont cross that level without coming down . Both that level and the downward resistance line are showng that at most nifty can travel is 4850 area. We should be trying to reach that target , by tomorrow.

At which point we might GO SHORT .

Nifty Plan update --2 Jan-2012

Weekly CHART below . Two good indicators the CCI(8) and stochastic(5) are in oversold zone. Dont see huge sell-off at this moment. Nifty has corrected around 90 more points than I expected.  The WOLFE WAVE line intersects the down trend resistance line at around 5280...So I think thats the maximum the Nifty can go . Also  Nifty has around 8 more trading days left  to touch that . Lets see what the market does.  Last year all the gains came in the 1st fortnight of January. After that Nifty has been crashing in SLOW MOTION. Also COMMERCIALS are NET LONG the EURO hugely . Seeing a squeeze there.

Another important thing is that January 10-11 is roughly 34 month from the MARCH 2009 low. So that should be significant time around there.  So lets hold on to the CALLs till that time or atleast till this week.


Update(28 dec--2:pm):-----Nifty should touch 4685 area. There we BUY January CALLs for a 1st target of 4930-4940.

I still believe we are going a lot higher than the current levels as I forecasted::---

From pattern and symmetry it looks like we rally for 16 TRADING DAYS. I will post more on that later.  Now 4820-4830 is very good resistance . I expect Nifty to take a pause there. So we should see that level by tomorrow . Where I would SQUARE OFF the longs. Then I should take a small SHORT POSITION . I am thinking of a downmove to 4720 . And thereafter no more DECEMBER CONTRACTS. Expiry is very near.  By Thursday or Friday , I should be going  LONG JANUARY contracts.

Happy Trading.


  1. would like to know do u update blogs daily? i folow r u blog its really good

  2. not daily .....but i will try to keep up with vital changes in market's direction ...thanks for reading.

  3. Hi, dont you think that the market may break due to poor q3 results, greater input costs, almost 18% Rupee depreciation etc..

  4. yes does look like it will break down ....but we really are interested in playing the ups and down moves as markets dont go down in a straight line