October 31, 2013

Market commentary with weekly/ monthly chart

NIFTY closes at 52 week high... now lifetime high of 6340 spot is within striking distance.

Couple of things: advance decline has been flat for some time and VIX is dropping showing diminishing fear (bullish view). On the other hand, bears may interpret falling VIX as increasing complacency (bearish). Option writing points to support at 6000 level.


There is no visually obvious call writing resistance. This means writers are still bullish (NOV series).


Weekly charts indicate an expanding triangle... this is formed because of extreme bearishness followed by extreme bullishness.



Monthly charts show closing at highest level ever. Gain this month has been 10%... difficult to see more gains in next month so action may become more stock specific.


8 comments:

  1. Is the WW valid which Sameer has pointed

    ReplyDelete
    Replies
    1. I have no idea... and I don't follow WW. Also, you should have posted the question in the forum and not here

      Delete
  2. NIFTY HAS GIVEN ITS INDICATION OF BULLISHNESS BEFORE ONE WEEK AGO. THREE WHITE SOLDIERS CANDLES PATTERN IS VERY RELIABLE . SO NO SURPRISE IN THIS RALLY

    ReplyDelete
    Replies
    1. It will be wrong to call the pattern as "three white soldiers" as this should form near market bottoms or a after a deep correction.

      It would have been valid had it formed near 5200 levels. You cannot have a bullish pattern being formed AFTER the markets have already moved 600-800 points on nifty

      Delete
  3. Dear sir,
    Is there any way to read your old comments say, last 5 years at least.

    ReplyDelete
    Replies
    1. No... the blog is less than a year old and because of some other problems, I deleted all old posts.

      Delete
  4. Respected Sir,

    A -WW is formed here i am waiting for correction upto 6100 level.

    ReplyDelete
  5. NIFTY 50 DAY MOVING AVERAGE (MA) CROSSED ITS 200 MA . SSE SENSEX ALREADY CROSSED IT. IT IS CLEARLY HAPPENED AFTER JULY 2012 . IT IS A BULLISH SIGNAL . IT MAY SUSTAIN MINIMUM FOUR WEEKS .

    ReplyDelete

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