sensex options as on 3.07.09

i have discussed market options in past mails. i have put both options in a single chart today.i have tried to show probable moves in coming few weeks.

as per one option we can move upto apprx 15300 and we can start good correction.

as per second option if we cross 15300 zone decisively we can see 16047 or more.

more comments are on charts.

MARKET GETTING READY TO MOVE FAST IN BREAKING OUT DIRECTION

we saw level of 15600 on 12/06/09 and after that corrected upto 14016 on 23/06/09 . after that we are consolidating. first we retraced upto 61.8% lvl at 14995 and retracing by 61.8% again and again. as shown in chart we are now on verge of break out in any direction and we will move fast in breaking out dirction.

we have been moving betn 21 dma and 34dma since lst 10 days. we r not closing above 21 dma and below 34 dma.
we have been closing above upmoving trend line on linear scale since march.

on higher side we can break out we can see levels of 15100-15300 first.i have shown a trend line connecting tops of 21206 and 15600. it will give resistance around 15300. on decisive crossing above 15300 probability of going for new high can increase and we can see levels of 16k.

on lower side on breaking support line we can get support on neck line around 14200. below that 14016 remains lst n final support for all long positions.

VOLATILITY CONTINUES.....

today also we saw volatility in mkt.even today we have closed above 34dma and on trendline. we r getting stong resistance at 21 dma. we r not able to close above it.today's range was given 14800-14400. we moved in range of 14765-14470.
still we r in two channels shown yesterday. for tomorrow we can be in range of 14470-14730.any decisive move above 14800 will indicate for move towards 15100-15300 zone minm.
steel stocks like tata steel, sail , power stocks like tata power has shown strength today.

14016 IS A FINAL STOP LOSS FOR ALL LONG POSIOTIONS.

VOLATILE AND CHOPPY SESSION

today we saw highly volatile and choppy session swinging in both directions.

we broke today 34dma and upmoving trend line intraday but closed above both.

i have shown two channels in attched chart. one is upward. second is downward.

they will help us in judging mkt direction.downward channel will give strong resistance around 14800.

upward channel will give support around 14400.

tentative Head n Shoulder pattern was shown before few days back. i have shown neck line also in chart. that will give support at 14200.

 

AS MENTIONED EARLIER 14016 IS A FINAL STOP LOSS FOR ALL LONG POSIOTIONS.

MARKET TAKING SUPPORT AT TREND LINE

look at attached chart. we have taken support at 34 dma and trend line. we must move up from here to maintain uptrend for targets of 15100-15300.

market status

yesterday we saw profit booking from 61.8% retracement zone as it was advised. today now we r near very good support zone betn 14526 and 14608. low so far is 14565 and current is 14600. we can see bounce from here. and it may be a last upmove towards 15100-15300 zone.

stock to watch godrej ind cmp 142.5

buy godrej ind for short term investment cmp 142.5

 

stop loss 135

stock to watch BOC INDIA cmp 148

BUY BOC INDIA AT 148.
it is a call for investors with patience.bcz its an illiquid counter with very high promoter stake apprx 90%.
stop loss of 142 can be kept. co had done buy back at 200 rs .

short term trading DCB cmp 39.5

buy DCB for short term trading cmp 39.5

stop loss 35

target 1 rs 41

target 2 rs 43

MARKET OPTIONS - WAVE C OPTION

we have seen two bullish options on 23.06.09 in thread http://pankaj564.blogspot.com/2009/06/market-options.html.

i will like to discuss here one bearish option which is also highly probable option if we make a lower top than 15600 and start correcting again.i have attached chart for the same.

 

wave details :

 

A 21206 to 7697

Ba 7697 to 10945

Bb 10945 to 8047

Bc 8047 to 15600

C 15600 to going on ?

 

targets for C wave . it shd correct minimum 50 % of rise from 7697 to 15600 i.e. 11649 and second target comes at 61.8% level at 10716.

 

on crossing 15600 decisively this view will be invalid.