Nifty Index – Indrajit’s Analysis For 9th-13th February?
In my last analysisof 3rd February 2015 on Nifty index I clearly indicated a correction here and we got enough correction whole last week.
Nifty index corrected from 8797.40 to Friday’s close of 8661.05. Its a 136 points haul after my ALERT. My readers are aware about the power of technicals. YES, its no magic, pure technicals.
Whats on the cards now?? Nifty has almost corrected to 38.2% retracement level of 8640.90 (made low of 8645.55 on last Friday). Today’s open is very very important. Check here, SGX Nifty is trading weak down by 85.50 points at 8638. So hopefully we are once again heading to an weak open and 38.2% retracement will be marked today. Over and out. Book your shorts once and lets find for an re-entry on the higher sides. We are bagging somewhere around 150-200 points depending on the open.
150-200 points in less than one weak is not bad, HUH!!
What next?? Longer term trend is still up and 2-period RSI is extremely oversold and I will not overrule possibilities of a dead cat bounce from these levels only to attract more shorts on the higher levels. Check the blue dotted trend lines in the image.
So, lion heart traders try some 8700 calls which will be available cheap in any kind of intraday dips on Monday. These call buying strategy if works will last for very very short term and all should have an eye on the Delhi election results. I suggest if you buy some calls, use a small percentage of your shorts profits for that, the overall trend still looks down and safe bet will be to re-enter shorts when we get bounce till the blue dotted trend line. Remember the shorting trend line is dynamic and will change the shorting levels with time.
If you want to know exact shorting levels in advance join my Technical Analysis Training where I teach my secret time price projection technique.
Now if we do not get enough bounce at 38.2% zone for short term, Nifty index will be definitely heading for 50% zone at 8531 or even 50-day Moving Average at 8448 or even 61.8% zone at 8421. But how to re-enter the shorts accurately, techniques only available for time price projection lovers.
Regarding stocks, I still maintain negative bias on HDFCBANK, UNTRACEMCO, GRASIM. SELL, SELL SELL the February futures if revives. They are all TTTB Trading System picks. You can also trade them as per my 2% Method. Any recovery just sell, and you are bound to make money.
There may be some scrips for buying also, but the scenario will be clear after today’s trade. So far jewellery scrips may be tried keeping in mind of the Valentine’s day. Many things will depend on today’s trading and closing. Keep your fingers crossed.
Opening Bell Update: Nifty marks low at 8577.20, 220 points on shorts!! 8600CE is trading at 153-154, cheap or not time will decide. Some more dips and start buying it!!
Indrajit is a professional blogger and Trading System developer, Amibroker expert, Wordpress expert, SEO expert and Stock market analyst. Trading since 2000, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.