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.

MARKET STATUS

i hope followers of blog must have enjoyed both side movements.
when we started correcting from 15600 it was mentioned in thread http://pankaj564.blogspot.com/2009/06/sell-off-from-new-high.html
that we might have started correction.and we corrected by 10% from there and we saw 14016 .

again it was mentioned in thread
http://pankaj564.blogspot.com/2009/06/market-options.html
that we may start upmove and so far we have seen apprx 800 points rise from there. we have seen good break out from triangle and sharp movement was seen as per expectation.

what next?
today we have reached near 50% retracement level 14808 when we tested 14782.
as mentioned earlier we have taken support at 34 dma and bounced. now we have reached next imp dma that is 21 dma.
so if we cross decisively this resisatnce zone around 14800 we can see 14995 next resistance zone soon.and we shd do profit booking there to buy in dips again.or due to global weakness if market opens weak we shd do buying around 14300-14400 zone for upmove.

stock specific buying shd be done.

14016 HAS NOW BECOME A STRONG SUPPORT LEVEL FOR COMING DAYS. BREAK OF IT WILL GIVE DEEPER CORRECTIONS.FOR ALL LONG POSITIONS STRICT STOP LOSS OF THIS LEVEL SHD BE KEPT.

retracement lvls

retracement levels of total fall from 15600 to 14016 are as given below

 

38.2% 14621

 

50% 14808

61.8% 14995

 

78.6% 15261

these levles can give resisatance to the upmove