Mid-session Outlook-2(21-10-2011)

As soon as selling signals seen then it updated in Mid-session Outlook and markets slipped fast after our message. Although 5108-5125 broken down but strong supports between 5012-5050 therefore complete selling is required to move below 5012.

Next moves preparation and trading range is 5050-5108 and intraday support signals also emerged at lower levels today. Mixed signals today therefore let market ripe for next moves within today trading range(5072-5120) then final conclusions will be drawn from intraday patterns formations and its break out.

Mid-session Outlook(21-10-2011)

Market is positive but selling signals seen therefore keep in mind and watch sustaining beyond 5108-5125 for confirmations.

Post-open Outlook(21-10-2011)

Strong support developed between 5012-5155 in last 6 sessions and complete selling formations are required to move below 5012.

Nifty traded 3 Hours with mixed intra day patterns between 5108-5125 on 17-10-2011 and again same trading on 19-10-2011. Total 6 hours trading with mixed intra day patterns between 5108-5125 in 2 sessions and finally sustaining beyond this range will be next moves confirmations.

Just watch sustaining beyond 5108-5125 for next big moves confirmations.

Technical Analysis and Research For 21-10-2011

Nifty-Intra Day Chart(20-Oct-2011):-

Just click on chart for its enlarged view

Technical Patterns and Formations in today intraday charts

1- Down moves in Falling Channel.
2- Consolidation between 5034-5050.
3- Last 2 hours up moves between 5053-5097.
4- Whole day trading between 5034-5097.

Conclusions

On going pull back rally started on 05-10-2011 and its correction begun from 5160 after 8 sessions as well as good support also seen between 5012-5035 on 18-10-2011. As Global markets were bleeding therefore Indian markets dipped sharply after weak opening but again good intraday support and base formation seen between 5034-5050 today.

Huge violent volatility in Global markets nowadays therefore trading levels will be finalised accoring to global mood and sentiment tomorrow morning. Dow Jones is more than 110 points down after European markets near about 2% down closing but in Indian markets good support and base formation at lower levels(5012-5050) in last 6 sessions therefore expected that indian markets will remain range bound between 5012-5155.

Although Indian markets could not sustain at higher levels in last 6 corrective sessions but selling are not strong at higher levels therefore 5012-5155 break out should be watched for next moves confirmations despite whatsoever depressing global markets because good support and base formation between 5012-5050 also.

Indian Stock Markets Closing Reports(20-Oct-2011)

Main features of today trading are as follows

1- Red closing even after good recovery from lower levels.
2- Bullish Hammer candle.
3- All the Indices closed in Red except IT.
4- Good support and base formation at lower levels today.

Ratios

Nifty Put Call Ratio: 1.06
Nifty P/E Ratio(20-Oct-2011): 18.14

Advances & Declines

BSE ADVANCES : 1106
BSE DECLINES : 1713
NSE ADVANCES :  495
NSE DECLINES :  905

Nifty Open Interest Changed Today

Nifty- 5000 CE(Oct)- +1206250(+53.73%)
Nifty- 5000 PE(Oct)- +34900(+0.56%)

Nifty- 5100 CE(Oct)- +1575200(+39.70%)
Nifty- 5100 PE(Oct)- +124550(+2.53%)

Nifty- 5200 CE(Oct)- +1670700(+24.48%)
Nifty- 5200 PE(Oct)- -42250(-2.54%)

Closing 

Nifty- closed at 5,091.90(-47.25 Points & -0.92%)
Sensex- closed at 16,936.89(-148.45 Points & -0.87% )
CNX MIDCAP - closed at 7,062.95(-79.40 Points & -1.11%)
BSE SMALL CAP- closed at 6,866.27(-32.39 Points & -0.47%)

Nifty Spot-Levels & Trading Strategy for 21-10-2011

Nifty Spot-Levels

R3 5181
R2 5140
R1 5115
Avg 5074
S1 5049
S2 5008
S3 4983

Nifty Spot-Trading Strategy

H6 5157     Trgt 2
H5 5142    Trgt 1
H4 5127    Long breakout
H3 5109     Go Short
H2 5103
H1 5097
L  5084
L2 5078
L3 5072    Long
L4 5054     Short Breakout
L5 5039     Trgt 1
L6 5024     Trgt 2

Nifty(Oct Fut)-Levels & Trading Strategy for 21-10-2011

Nifty(Oct Fut)-Levels

R3 5209
R2 5160
R1 5131
Avg 5082
S1 5053
S2 5004
S3 4975

Nifty(Oct Fut)-Trading Strategy

H6 5181     Trgt 2
H5 5162     Trgt 1
H4 5144     Long breakout
H3 5123     Go Short
H2 5116
H1 5109
L1 5094
L2 5087
L3 5080     Long
L4 5059     Short Breakout
L5 5041     Trgt 1
L6 5022     Trgt 2

Bank Nifty(Oct Fut)-Levels & Trading Strategy for 21-10-2011

Bank Nifty(Oct Fut)-Levels

R3 10023
R2 9908
R1 9840
Avg 9725
S1 9657
S2 9542
S3 9474

Bank Nifty(Oct Fut)-Trading Strategy

H6 9958     Trgt 2
H5 9915     Trgt 1
H4 9872     Long breakout
H3 9822     Go Short
H2 9805
H1 9788
L1 9755
L2 9738
L3 9721     Long
L4 9671     Short Breakout
L5 9628     Trgt 1
L6 9585     Trgt 2

Pre-Closing Outlook(20-10-2011)

Support range of 5012-5035 was mentioned in both previous outlooks and Nifty bounced from 5033.95 after good consolidation between 5034-5050.

Indian markets are range bound between 5012-5155 and global cues led random moves within this range for the last 6 sessions therefore will be safer to get confirmation through sustaining beyond this range.

Mid-session Outlook(20-10-2011)

Markets are highly volatile on violent global cues and without much intraday trading positions therefore next moves confirmation will be only sustaining beyond any crucial level.

Intraday support was seen between 5012-5035 on 18-10-2011 and Nifty is trading at higher levels of this range for the last 2 hours. 10 days old pull back rally and interpretation of sustaining beyond this range will be as follows:-

1- Finally sustaining above 5035 will mean pull back rally correction completion and up moves for testing resistances between 5145-5220.
2- Finally sustaining below 5012 will mean pull back rally termination and beginning of fresh down moves towards lower levels of 51 sessions old trading range(4720-5229).

Post-open Outlook(20-10-2011)

Weakness clearly seen today and Indian markets are under performing global cues as well. 6 hours trading range(5108-5125) was mentioned in two previous topics which was broken out yesterday and broken down today on the back of strong/weaker global cues.

Global cues led high volatility nowadays and Nifty slipped below 5108 today. Next supports are between 5012-5035, as real weakness is clearly visible today therefore its testing is possible and on going rally termination confirmation will be after sustaining below 5012.

Pre-open Outlook(20-10-2011)

Nifty traded 6 hours trading within or near about 5108-5125 in last 2 days.This range was broken out and Nifty traded last one hour above 5125 yesterday. As up move was without force therefore doubts were expressed in both previous outlooks(Pre-Closing and Nifty-Micro Analysis) following line were told:-

1- confirmation is required tomorrow through sustaining above 5125 and crossing first resistance range of 5125-5155.

2- If Nifty fails to sustain above 5125 then  break out and sustaining beyond 6 hours trading range(5108-5125) should be watched for next moves confirmations.

More than 40/50 points up/down opening nowadays on the back of extreme bullish/bearish Global cues. As global cues are weak therefore 40/50 points down opening will be seen today but sustaining below 5108 will be down moves confirmation therefore should be firstly watched today.

Nifty-Micro Analysis of Intra Day Chart For 20-10-2011

Nifty-Intra Day Chart(19-Oct-2011):-

Just click on chart for its enlarged view

Technical Patterns and Formations in today intraday charts

1- Consolidation Patterns between 5076-5085
2- Consolidation between 5095-5102
3- 3 Hours mixed patterns between 5108-5125
4- Last 1 hour up move without force between 5122-5148
5- Whole day trading between 5095-5148

Conclusions

Nifty traded last 3 hours between 5108-5125 with mixed patterns on 17-10-2011 and Nifty again traded 3 hours within same same range today. Firstly trading with mixed patterns today and after that up move in last 1 hour without force between 5122-5148 therefore more requirement of consolidation and up moves confirmation through sustaining above 5125 and minimum crossing first resistance range of 5125-5155 tomorrow or in the coming sessions.

Resistances at higher levels are as follows;-

1- Selling between 5135-5155(on 17-10-2011)
2- Old Resistance 5145-5220

Resistances at higher levels therefore follow up buying and consolidation is must for crossing above resistances and sustaining above last 50 sessions trading range highest(5229)

Firstly watch sustaining above 5125 and that will be first strong signal of blasting rally beginning above 5229. If Nifty fails to sustain above 5125 then  break out and sustaining beyond 6 hours trading range(5108-5125) should be watched for next moves confirmations.

FII Trading Data in Derivatives Segment on 19-Oct-2011

FII & DII trading activity in Capital Market Segment on 19-Oct-2011

FII trading activity on NSE and BSE in Capital Julket Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value FII 19-Oct-2011 1768.89 1783.34 -14.45

DII trading activity on NSE and BSE in Capital Julket Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 19-Oct-2011 763.47 857.93 -94.46

Indian Stock Markets Closing Reports(19-Oct-2011)

Main features of today trading are as follows

1- Long White Candle after gap up opening.
2- All the Indices closed in Green and most with good gains.
3- Closing at the top of on going rally.

Ratios

Nifty Put Call Ratio: 1.16
Nifty P/E Ratio(19-Oct-2011): 18.36

Advances & Declines

BSE ADVANCES : 1664
BSE DECLINES : 1151
NSE ADVANCES :  949
NSE DECLINES :  459

Nifty Open Interest Changed Today

Nifty- 5000 CE(Oct)- -1007750(-30.08)
Nifty- 5000 PE(Oct)- +521500(+8.91%)

Nifty- 5100 CE(Oct)- -448900(-8.84%)
Nifty- 5100 PE(Oct)- +2488050(+87.20%)

Nifty- 5200 CE(Oct)- +485400(+7.29%)
Nifty- 5200 PE(Oct)- +606350(+55.79%)

Closing 

Nifty- closed at 5,138.05(+101.65 Points & +2.02%)
Sensex- closed at 17,085.34(+337.05 Points & +2.01% )
CNX MIDCAP - closed at 7,142.55(+94.70 Points & +1.34%)
BSE SMALL CAP- closed at 6,898.66(+44.28 Points & +0.65%)

Nifty Spot-Levels & Trading Strategy for 20-10-2011

Nifty Spot-Levels

R3 5239
R2 5193
R1 5166
Avg 5120
S1 5093
S2 5047
S3 5020

Nifty Spot-Trading Strategy

H6 5212     Trgt 2
H5 5196     Trgt 1
H4 5179     Long breakout
H3 5159     Go Short
H2 5152
H1 5145
L1 5132
L2 5125
L3 5118     Long
L4 5098     Short Breakout
L5 5081     Trgt 1
L6 5065     Trgt 2

Nifty(Oct Fut)-Levels & Trading Strategy for 20-10-2011

Nifty(Oct Fut)-Levels

R3 5267
R2 5212
R1 5180
Avg 5125
S1 5093
S2 5038
S3 5006

Nifty(Oct Fut)-Trading Strategy

H6 5237     Trgt 2
H5 5217     Trgt 1
H4 5196     Long breakout
H3 5172     Go Short
H2 5164
H1 5156
L1 5141
L2 5133
L3 5125     Long
L4 5101     Short Breakout
L5 5080     Trgt 1
L6 5060     Trgt 2

Bank Nifty(Oct Fut)-Levels & Trading Strategy for 20-10-2011

Bank Nifty(Oct Fut)-Levels

R3 10180
R2 10028
R1 9942
Avg 9790
S1 9704
S2 9552
S3 9466

Bank Nifty(Oct Fut)-Trading Strategy

H6 10099     Trgt 2
H5 10043     Trgt 1
H4  9986     Long breakout
H3  9921     Go Short
H2  9899
H1  9877
L1  9834
L2  9812
L3  9790    Long
L4  9725    Short Breakout
L5  9668    Trgt 1
L6  9612    Trgt 2

Pre-Closing Outlook(1910-2011)

Nifty traded last 3 hours between 5108-5125 with mixed patterns on  on 17-10-2011 and it was mentioned on same day. Nifty again traded within or near about same range for more than 3 hours and it was again mentioned in Mid-session Outlook today.

6 hours trading within or near about 5108-5125 and Nifty moved above 5125 and also trading above for the last half hour but lacking force therefore confirmation is required tomorrow through sustaining above 5125 and crossing first resistance range of 5125-5155.

Resistances at higher levels are as follows;-

1- Selling between 5135-5155(on 17-10-2011)
2- Old Resistance 5145-5220

Finally sustaining above 5125 will mean high possibility of blasting rally.

Mid-session Outlook(1910-2011)

Nifty traded 3 hours with mixed intraday patterns between 5108-5125 on 17-Oct-2011 and Nifty is again trading within or near about this range for the last 90 minutes. Selling and resistances above this range and minor supports also below this range. Sustaining beyond this range will be first strong indication next moves beginning therefore

Firstly watch sustaining beyond 5108-5125 for next moves confirmation.