Nifty Spot-Levels & Trading Strategy for 02-11-2011

Nifty Spot-Levels

R3 5370
R2 5340
R1 5298
Avg 5268
S1 5226
S2 5196
S3 5154

Nifty Spot-Trading Strategy

H6 5329     Trgt 2
H5 5312     Trgt 1
H4 5296     Long breakout
H3 5276     Go Short
H2 5270
H1 5263
L1 5250
L2 5243
L3 5237      Long
L4 5217     Short Breakout
L5 5201     Trgt 1
L6 5184    Trgt 2

Nifty(Nov Fut)-Levels & Trading Strategy for 02-11-2011

Nifty(Nov Fut)-Levels

R3 5404
R2 5369
R1 5330
Avg 5295
S1 5256
S2 5221
S3 5182

Nifty(Nov Fut)-Trading Strategy

H6 5365     Trgt 2
H5 5348     Trgt 1
H4 5331     Long breakout
H3 5311     Go Short
H2 5304
H1 5297
L1 5284
L2 5277
L3 5270     Long
L4 5250     Short Breakout
L5 5233     Trgt 1
L6 5216     Trgt 2

Bank Nifty(Nov Fut)-Levels & Trading Strategy for 02-11-2011

Bank Nifty(Nov Fut)-Levels

R3 10195
R2 10107
R1 9988
Avg 9900
S1 9781
S2 9693
S3 9574

Bank Nifty(Nov Fut)-Trading Strategy

H6 10077     Trgt 2
H5 10030     Trgt 1
H4  9982    Long breakout
H3  9925    Go Short
H2  9906
H1  9887
L1  9850
L2  9831
L3  9812    Long
L4  9755    Short Breakout
L5  9707    Trgt 1
L6  9660    Trgt 2

Pre-Closing Outlook(01-11-2011)

Dow's Futures is more than 100 points down and European markets are 2% to 3% down today but support seen in Indian markets at lower levels and Nifty got support above 5219.Gap of 28-10-2011 not filled up today despite crashing global cues and today lowest is at 5238.30.

Correction is on on the back of depressing global markets and first of all 5238.30 will be watched tomorrow and sustaining above it will be completion of today started correction as well as  survival confirmation of gap support of 28-10-2011.

Mid-session Outlook(01-11-2011)

US markets closed more than 2% down yesterday and its futures is again more than 1% down today. Most European markets closed near about 3% down yesterday and its futures are also more than 2% down today. Although Asian markets are mixed but most are more than 1.2% down therefore sentiment has again turned weaker and Indian markets slipped to more than 1% down.

Correction is on and Indian markets slipped from higher levels after some selling and testing of 5219 will be more weakness signal because that will mean filling of gap(28-10-2011). As today down moves are showing falling channel formation(bullish pattern) therefore expected that correction will not be much deeper and will finish above 5219.

Huge Global volatality therefore confirmation is must through complete consolidation patterns.As soon as it will develop then will be updated.

Technical Analysis,Researches & Market Outlook(01-11-2011)

104 Points(5323-5219) gap up opening on 28-10-2011 and after that Nifty traded 2 days with mixed intraday patterns within 5318-5365. Profit booking possibility was told for both previous outlooks and it was seen also and negative zone trading will be seen in Indian markets today after weaker global cues.

Daily Indicators and Averages Chart:-

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Nifty-Intra Day Chart(Oct 28 & Oct 31,2011):-

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Technical Patterns and Formations in last 5 sessions intraday charts

1- Selling between 5340-5265
2- Condolidation Patterns between 5318-5345
3- Last 2 days trading between 5318-5365

Conclusions

672 Points rally in last 16 sessions and all the short term oscillators are overbought therefore its correction will be seen after higher levels profit booking and Red global markets. Correction may be range bound or some down moves may be seen and if 104 Points gap of 28-10-2011 does not filled up in this correction and Nifty finally sustains above 5219 then blasting rally will be seen in Indian markets after expected correction completion.

As mixed intraday patterns in both previous sessions therefore firstly sustaining below 5318 should be watched first after weak opening today and following 2 supports will be also watched first for completion of expected today correction:-

1- 5306
2- 5287

FII Trading Data in Derivatives Segment on 31-Oct-2011

Indian Stock Markets Closing Reports(31-Oct-2011)

Main features of today trading are as follows

1- Benchmark Indices closed in Red while MIDCAP and SMALLCAP closed in Green.
2- Most Indices closed in Red but some closed in Green also.
3- Small Back Candle.
3- Although Red closing but intraday charts are not suggesting pure selling patterns and consolidation signals also.

Ratios

Nifty Put Call Ratio: 1.13
Nifty P/E Ratio(31-Oct-2011): 18.90

Advances & Declines

BSE ADVANCES : 1482
BSE DECLINES : 1392
NSE ADVANCES :  744
NSE DECLINES :  692

Nifty Open Interest Changed Today

Nifty- 5300 CE(Nov)- +190150(+6.04%)
Nifty- 5300 PE(Nov)- +490000(+15.95%)

Nifty- 5400 CE(Nov)- +790450(+17.28%)
Nifty- 5400 PE(Nov)- -90700(-6.27%)

Closing 

Nifty- closed at 5,326.60(-34.10 Points & -0.64%)
Sensex- closed at 17,705.01(-99.79 Points & -0.56% )
CNX MIDCAP - closed at 7,267.15(+27.35 Points & +0.38%)
BSE SMALL CAP- closed at 6,974.61(+14.88 Points & +0.21%)

FII & DII trading activity in Capital Market Segment on 31-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 31-Oct-2011 2587.45 2228.67 358.78

DII trading activity on NSE and BSE in Capital Julket Segment(In Rs. Crores) Category Date Buy Value Sell Value Net Value DII 31-Oct-2011 945.29 1221.65 -276.36

Nifty Spot-Levels & Trading Strategy for 01-11-2011

Nifty Spot-Levels

R3 5398
R2 5379
R1 5352
Avg 5333
S1 5306
S2 5287
S3 5260

Nifty Spot-Trading Strategy

H6 5372     Trgt 2
H5 5361     Trgt 1
H4 5351     Long breakout
H3 5338     Go Short
H2 5334
H1 5330
L1 5321
L2 5317
L3 5313    Long
L4 5300     Short Breakout
L5 5290     Trgt 1
L6 5279    Trgt 2

Nifty(Nov Fut)-Levels & Trading Strategy for 01-11-2011

Nifty(Nov Fut)-Levels

R3 5415
R2 5396
R1 5371
Avg 5352
S1 5327
S2 5308
S3 5283

Nifty(Nov Fut)-Trading Strategy

H6 5391     Trgt 2
H5 5381     Trgt 1
H4 5371     Long breakout
H3 5359     Go Short
H2 5355
H1 5351
L1 5342
L2 5338
L3 5334     Long
L4 5322     Short Breakout
L5 5312     Trgt 1
L6 5302     Trgt 2

Bank Nifty(Nov Fut)-Levels & Trading Strategy for 01-11-2011

Bank Nifty(Nov Fut)-Levels

R3 10411
R2 10268
R1 10142
Avg 9999
S1 9873
S2 9730
S3 9604

Bank Nifty(Nov Fut)-Trading Strategy

H6 10289     Trgt 2
H5 10226     Trgt 1
H4 10163     Long breakout
H3 10089     Go Short
H2 10065
H1 10040
L1  9991
L2  9966
L3  9942    Long
L4  9868    Short Breakout
L5  9805   Trgt 1
L6  9742    Trgt 2

Pre-Closing Outlook(31-10-2011)

Global cues led hugely volatile markets nowadays and today also Dow's Futures is more than 110 points down as well as all the European markets are more than 1.20% down after gap down opening today. Indian markets also traded whole day in Red but intra day patterns are mixed and require confirmations for next moves.

Although lower levels buying today and technically bullish market confirmations also but profit booking also seen at higher levels today and on 28-10-2011. Finally sustaining above 5323 will be next strong rally confirmations and will be watched first.

Nifty traded whole day between mentioned range(5310-5370) with mixed intraday patterns. Although Red closing will be seen ater whole day negative zone trading but intraday patterns are not showing pure selling but consolidation indications also therefore today range break out will give next trend confirmations and will be firstly watched in the coming sessions.

Only watch break out of 5310-5370 and sustaining beyond 5323 for next moves confirmations.

Mid-session Outlook(31-10-2011)

Indian markets slipped after higher levels profit booking but did not sustained below 5323 and recovered also from lower levels. Following line was told in Technical Analysis & Market Outlook today:-

Nifty wil firstly trade between 5310-5370 and finally sustain above 5323 and rally will remain continued.

Today first 2 hours trading range is 5316.95-5360.25

Nifty will prepare for all the next moves between 5310-5370 and this range break out will be next moves confirmation therefore

Only watch break out of 5310-5370

Post-open Outlook-2(31-10-2011)

Profit booking possibility was clearly told in Technical Analysis & Market Outlook today and it was seen also at higher levels today. Dow's futures is  more than 110 points down and all the Asian markets are also in Red as well as trading near day's lows.

Sentiment turned weak and immediate minor resistance developed between 5325-5350 therefore some weakness may be seen today and if Nifty finally sustains below 5323 then down moves will be considered.

Post-open Outlook(31-10-2011)

Dow's Futures is 90 points down and most Asian markets are also .50% to 1.00% down therefore sentiment turned weaker and Indian markets are also in Red since opening today. As some profit booking was expected therefore it was seen also immediately after opening today but supports will develop and until Nifty will not sustain below 5323 till then any down move will not be considered.

Technical Analysis & Market Outlook(31-10-2011)

Technical Analysis and Research of EOD charts,Technical Positions,next possibilities have already been explained in following 4 topics with 4 Charts therefore not being repeated:-

1- Most Bullish Island Reversal & 2 other Bullish Pattrens
2- Indian markets Waves structure from 2008 Crash to 28-Oct-2011
3- Wave-4 'ABC' Correction completion on 28-10-2011
4- Wave-4 correction completion at 61.8% Fibonacci Retracement level


Nifty-Intra Day Chart(28-Oct-2011):-

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Technical Patterns and Formations in today intraday charts

1- Consolidation between 5323-5345.
2- Minor selling between 5350-5265.
3- Whole day trading between 5323-5365.

Conclusions

Huge gap up and after that both consolidation and minor selling was seen between 5323-5365 on 28-10-2011. As sentiment is heated therefore voltality after minor profit booking may be seen today but expected that Nifty wil firstly trade between 5310-5370 and finally sustain above 5323 and raly will remain continued.

Most Bullish Island Reversal & 2 other Bullish Pattrens

Technical Analysis and Research & Market Outlook

Nifty-EOD Chart(28-Oct-2011):-

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Technical Patterns and Formations in EOD charts

1- Rally highest at 6338.50 on 05-11-2010.
2- 9 Months Falling Trend Line Correction
3- 94 Points gap down on 05-08-2011(5323-5229)
4- 54 Sessions range bound consolidation between 4720-5229 after that.
5- Bullish'W' Pattern formation during 54 Sessions range bound market.
6- 104 Points gap on 28-10-2011(5323-5219).
7- Bullish Break out on 28-10-2011.
8- Bullish Island Reversal Pattren confirmation on 28-10-2011.
9- Long Term Trend reversal confirmation.

Conclusions

Finally sustaining above 5323 on 28-10-2011 is confirmation of following most bullish patterns:-

1- Bullish Island Reversal Pattren formation.
2- 54 Sessions range bullish Break out on 28-10-2011.
3- Bullish'W' Pattern formation during 54 Sessions range bound market

Last one year trend reversal and correction completion confirmation on 28-10-2011. Eruption of that blasting rally will be seen which will cross all time high in 2012.

Indian markets Waves structure from 2008 Crash to 28-Oct-2011

Technical Analysis and Research & Market Outlook

Nifty-EOD Chart(28-Oct-2011):-

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Technical Patterns and Formations in EOD charts

1- 2008 Crash and its 5 waves completed on 27-10-2008 at 2252.
2- 5 months range bound consolidation
3- Range break out in March 2009
4- Impulsive Wave 1 confirmation on 27-10-2008 from 2252.
5- Wave-3 completed at 6338.50 on 05-11-2010 and Wave-4 begun.
6- Wave-4 completed at 4720 on 26-08-2011 and Wave-5 begun.
7- Wave-5 beginning confirmation on 28-10-2011 after crossing the 54 Sessions range, 94 points gap and sustaining above 5323.

Conclusions

Impulsive Wave-5 beginning confirmation therefore expected that strong rally will be seen above all time high in the coming months and year(2012) as well as minimum target in 2012 is 6652(113% of Wave-3)

Wave-4 'ABC' Correction completion on 28-10-2011

Technical Analysis and Research & Market Outlook

Nifty-EOD Chart(28-Oct-2011):-

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Technical Patterns and Formations in EOD charts

1- Wave-4 correction.
2- 'ABC' Correction pattern.
3- 'ABC' Correction completion after break out of 54 Sessions range bound  market between 4720-5229.
4- Impulsive Wave-5 commencement confirmation.

Conclusions


Corrective Wave-4 completed and impulsive Wave-5 is on therefore expected that it will cross Wave-3 top(6338.50) and new highs will be seenaccording to Wave-5 targets.

Wave-4 correction completion at 61.8% Fibonacci Retracement level

Technical Analysis and Research & Market Outlook

Nifty-EOD Chart (28-Oct-2011):-

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Conclusions

It is the character that many time correction completes at or near about 61.8% Fibonacci Retracement level and same is visible in above EOD Chart. As Corrective Wave-4 completion and impulsive Wave-5 is beginning confirmation therefore expected that on going Wave-5 will cross all time high strong rally will be seen above all time high as well in the coming months and year(2012).