LOOK AT CHART ATTACHED. POSITIVE DIVERGENCE IS SHOWN IN RSI IN CHART, SLOW STOCHASTIC AND MACD ARE ALSO SHOWING +VE DIVERGENCE. WILL WE SEE A PULL BACK?
Dear Amar, when we are in downtrend it is very difficult to buy n sell even if we r in a pull back stage. normally if we want to be in cash segment niftybees can be useful being a low beta instrument and we dont have to worry which stock will contribute in pull back.
in normal conditions RIL is a proxy to sensex so that be used for buy n sell.
Dear Aseem, correction started from 15600 is still on. we are in 3rd downward wave of that fall first was from 15600 to 14016. second upward was from 14016 to 15098 and now we are in third downward wave.since we have broken 13479 also so now we are in big gap created post results from 12300-13500. so we will be moving towards 12300.
we can try to find out some support levels . on immediate basis supports are 13140/12934/12714/12581 depending upon no of basis. i will update later.
Dear Pankaj Sir, Was RSI/Slow Stoch on intraday chart too small to verify for divergence? I mean, on friday market cleverly gave false breakout upside, when RSI almost went to over-bought levels and then fell vertically down? So pull back was very short lived and deceptive. Probably you indicated on very short term basis only?
u r absolutely correct. +ve divergences gave a pull back but not strong enough. my thursday's comments were for a pull back within 3rd downward subwave which has started from 15098 on budget day.as i had mentioned in other mail zone around 14k was crucial for confirmation of pull back but rally fizzled out from aprrx 13900 only.
actually if u look at chart posted today just before few mins a classic support is seen on RSI line which is giving support since oct 08 lows. so that has created again a hope for a pull back.actually as per wave size i was expecting minm low of 13140 apprx.but we corrected upto 13220 only. so as per wave count it is confusing to give a strong comment on pull back but if we survive this rsi trend line then we can see a good pull back of fall from 15098 to today's fall.keep sharing yr thoughts.!
Sir,
ReplyDeleteAny picks for shorterm??
Thanks
Amar
Dear Amar,
ReplyDeletewhen we are in downtrend it is very difficult to buy n sell even if we r in a pull back stage. normally if we want to be in cash segment niftybees can be useful being a low beta instrument and we dont have to worry which stock will contribute in pull back.
in normal conditions RIL is a proxy to sensex so that be used for buy n sell.
i am trading today in century textile.
keep strict stop losses.
+ve divergence does not work much.cld not cross 13900 also and again big sell off starts.....
ReplyDeleteSir..thank you for your advice..to be on a safe side ..i have added Hindustan lever at 266
ReplyDeleteThanks
Amar
Dear Pankaj ji...
ReplyDeleteAwaiting your inputs on Friday' fall and whats coming up next....
Thanks in advance,
Aeem
Dear Aseem,
ReplyDeletecorrection started from 15600 is still on. we are in 3rd downward wave of that fall first was from 15600 to 14016. second upward was from 14016 to 15098 and now we are in third downward wave.since we have broken 13479 also so now we are in big gap created post results from 12300-13500. so we will be moving towards 12300.
we can try to find out some support levels .
on immediate basis supports are 13140/12934/12714/12581 depending upon no of basis. i will update later.
Dear Pankaj Sir,
ReplyDeleteWas RSI/Slow Stoch on intraday chart too small to verify for divergence? I mean, on friday market cleverly gave false breakout upside, when RSI almost went to over-bought levels and then fell vertically down? So pull back was very short lived and deceptive. Probably you indicated on very short term basis only?
Regards
Manoj
Dear Manojji,
ReplyDeleteu r absolutely correct. +ve divergences gave a pull back but not strong enough. my thursday's comments were for a pull back within 3rd downward subwave which has started from 15098 on budget day.as i had mentioned in other mail zone around 14k was crucial for confirmation of pull back but rally fizzled out from aprrx 13900 only.
actually if u look at chart posted today just before few mins a classic support is seen on RSI line which is giving support since oct 08 lows. so that has created again a hope for a pull back.actually as per wave size i was expecting minm low of 13140 apprx.but we corrected upto 13220 only. so as per wave count it is confusing to give a strong comment on pull back but if we survive this rsi trend line then we can see a good pull back of fall from 15098 to today's fall.keep sharing yr thoughts.!