DR REDDY AT A CRITCAL SUPPORT

COMMENTS ON CHART

stock to watch DR REDDY cmp 791

pharma stocks have started showing strength now.

 

look at DR DReddy for short term trading.

 

cmp 791

 

target 823

 

stop loss 769

 

Fwd: HEADING TO 16K+

yesterday  during market hours i had posted nifty chart.

 

NIFTY AT A CRITICAL LEVEL

 

in nifty we have crossed downward trend line. today i have posted chart for sensex.it has just tested trend line but looking at other indicators markets will cross it soon.so now we will be looking for +ve option as i had discussed ....

MARKET ?

so we might be moving on first sub wave of fifth sub wave .targets for this move can be 16k+

 

 

--
The easiest way to make ourselves healthy is to see that others are healthy, and the easiest way to make ourselves happy is to see that others are happy - Swami Vivekananda

NIFTY AT A CRITICAL LEVEL

LOOK AT CHART ATTACHED

MARKET ?

as expected we got resisted at neckline of H n S which was around 14450 and today's high was 14493 and we closed at 14250 neacr yesterday's close.

 

in last mail i had said

 

"if we can cross this zone decisively then we will discuss bullish views, till then we r treating this upmove as a pull back. "

 

today in isg forum more details were asked for bullish view and i had replied as given below.pl go thru it it is interesting.

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at present we are correcting after making a top at 15600 and lower top
at 15098 seen on budget day.more over at present we are following H n
S pattern.and today's level for neck line was around 14450 and today
we have seen 14493 and reversed from there. since neckline is inclined
upwards more we pass time neck line levels will go higher.

now i come to bullish option in mind ;

if u recall i had shown a downward channel after we started correcting
from 15098, so a downward resistance line i am following that is
connecting 15600 and 15098. if we cross this trend line that will give
first indication of any bullishness.for today value is just above
14800 and will come down as we pass more time.and more strength can
come to bullish view on croosing 15098 which a last intermediate top
made.

as per wave count to justify this bullish view we have to consider
that all corrections were over at 7697 last yr oct.and assuming that
we are on a fresh bull run from 7697 and we are on first upward wave
having 5 sub waves with following counts.

first upward 7697 to 10945
second downward 10945 to 8047
third upward 8047 to 15600
fourth downward 15600 to 13220
fifth and final upward from 13220 to ....?

i am having this view since no of days but i have not discussed in isg
or at my blog bcz it wld have confused followers.i will update on
further developements. hope this does not confuse any one.
*************************************************************************

we have to watch market for few days. if neck line of H n S is crossed decisively then we will think for bullish option. as discussed above on crossing downward trend line connecting 15600 and 15098 will give us first indication for the same.

 

 

 

 

TIME TO BE CAUTIOUS

we continued with upmove today also with very good broad based participation. we reached to 14300 very close to target of 14400 given yesterday.

i give herewith some levles:-

NECK LINE RESISATNCE AT NECKL INE FOR TOMORROW JUST ABOVE 14400
61.8% RETRACEMENT OF FALL FROM 15098 TO 13220 AT 14381
50 % RETRACEMENT OF FALL FROM 15600 TO 13220 AT 14410
FALLING WEDGE TARGET NEAR 14400 ALREADY GIVEN YESTERDAY.

we have moved up by more than 1000 points in this upmove. it may be advisable to book profits around this zone and watch market from side lines. it is quite possible that we may see consolidation in large cap and can see continuation in mid cap stocks.

if we can cross this zone decisively then we will discuss bullish views, till then we r treating this upmove as a pull back.

SENSEX AS ON 14.07.09

based on rsi trendline support i had discussed yesterday and with help of +ve global markets we have seen good upmove in our markets.since we are correcting with Head n Shoulder pattern this upmove can be strongly resisted at neck line whenever we reach there in coming days.

 

more over we have seen break out from a falling wedge today as shown in chart and this give target of apprx 14400.

 

this upmove can be used for trading only with strict stop losses.

WILL RSI TRENDLINE WILL HELP TO GIVE A PULL BACK?

LOOK AT CHART ATTACHED.

 

COMMENTS ON CHART.

5 DAY CHART AS ON 9.07.09

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?

13700 BROKEN

as per expectation we got support at 13700 yesterday and we bounced upto apprx 14k.

today we have broken 13700 also. still we are moving in downward channel and support level in this channel will be getting lower n lower daily.

55 dma is at 13641, next fibo mov avg is 89dma and it is at 12059

 

if we look at candle stick chart now reliable supports come around 13519 low made on 26/05/09 and 13479 gap open low made on 18/05/09 on post election result euphoric day. below that 12300/12500 will be next good support area.

for resistance we shd observe neck line of H n S pattern.

 

now we are making lower top lower bottom formations.for any pull back first signal can come on crossing last top around 14k made yesterday.