For the last 1 week, I was not confident on any fresh long positions in Nifty.
"I am personally long on stocks and selling deep OTM calls. Also hedging with shorts on Nifty at higher levels." This is what I wrote in my last article.....From then at 5160, we are now at 5040 after bouncing from 5000 levels.....Today, I covered my shorts completely and went long with a stop at 4985.....
Now, observe the EOD and Weekly NF charts respectively.....
"I am personally long on stocks and selling deep OTM calls. Also hedging with shorts on Nifty at higher levels." This is what I wrote in my last article.....From then at 5160, we are now at 5040 after bouncing from 5000 levels.....Today, I covered my shorts completely and went long with a stop at 4985.....
Now, observe the EOD and Weekly NF charts respectively.....
http://i441.photobucket.com/albums/qq134/Saptarshi_m/Nifty%20Analysis/NFEODChart---16122009.jpg
http://i441.photobucket.com/albums/qq134/Saptarshi_m/Nifty%20Analysis/NFWeeklyChart---16122009.jpg
Refer to the weekly chart, the patterns 1-2-3-4-5 (counted in reverse order from right to left), a similar pattern A-B-C-D-E is in the making....This is in continuation of my earlier "Mirror Image" theory.....
Now, refer to the EOD chart, we find a triangle being formed on the right hand side between the parallel channel....Currently NF is at 5040 which is near the lower end of the triangle which is just above the 34ema line....
So, as per the above charts, NF should be heading towards the point "E" mentioned in the weekly chart....BUT, as you can see I have circled one area on the left hand side in both the charts, which is one alert zone.....
Combining the 2 charts, I strongly feel that 5020 zone remains a critical support area which is the lower end of the triangle formed on the right in EOD chart....If that holds, we are poised towards "E" from here on.....Otherwise, NF will test the lower end of the parallel channel which os somewhere near 4800 before moving towards "E".....
If someone longs near 5020 then keep a stop of 4985. For positional players, focus more on stocks and sell deep OTM calls and puts....
http://i441.photobucket.com/albums/qq134/Saptarshi_m/Nifty%20Analysis/NFWeeklyChart---16122009.jpg
Refer to the weekly chart, the patterns 1-2-3-4-5 (counted in reverse order from right to left), a similar pattern A-B-C-D-E is in the making....This is in continuation of my earlier "Mirror Image" theory.....
Now, refer to the EOD chart, we find a triangle being formed on the right hand side between the parallel channel....Currently NF is at 5040 which is near the lower end of the triangle which is just above the 34ema line....
So, as per the above charts, NF should be heading towards the point "E" mentioned in the weekly chart....BUT, as you can see I have circled one area on the left hand side in both the charts, which is one alert zone.....
Combining the 2 charts, I strongly feel that 5020 zone remains a critical support area which is the lower end of the triangle formed on the right in EOD chart....If that holds, we are poised towards "E" from here on.....Otherwise, NF will test the lower end of the parallel channel which os somewhere near 4800 before moving towards "E".....
If someone longs near 5020 then keep a stop of 4985. For positional players, focus more on stocks and sell deep OTM calls and puts....
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