Analysis of Nifty and Sensex 23 Feb 2012 Buy or Sell
Now Nifty and Sensex have given the correction
Most of the technical analysts were predicting this from 5400 levels
Now there is a feeling among them "See I was right.I already told about the correction"
But What Now?
Image By:Ron leishman
Should you buy the dip as in Bull markets or Should you short sell as it may be the start of big down move
First See the Charts
Nifty
Sensex
First Lets analyse the charts
See the Big Volume associated with Downfall which is second Highest Volume in last 3 months.now this is a danger signal.
Lets concentrate on ADX too.ADX is in unusually High Range(Excess of 70) and started downward slope.
FII have Sold Worth Rs 1040 Crore in index and Stock Futures.
In cash markets DII have sold stocks worth 1332 Crores while FII have bought Stock Worth 832 Crorores only
Technically Nifty Sensex are in mess.
Should you Sell?
Certainly do not do at current levels
Watch Sensex and Nifty First
If Nifty Dips below 5471 and remains there for Some Time, Initiate Shorts With Stop loss of 50 points in Nifty.Better option will be wait till 1.30 PM or 2 PM before initiating Shorts .
Cant it Rise from Current levels?
Allthough probability is low still it can.
Buy above 5560 if stays for 30-40 minutes.Do not try to short at 5550-5560.A move above those levels will imply that the correction is over.
In Nutshell
Nifty Last Close: 5505
Buy Above: 5560
Sell Below :5470
No trade if Nifty is between 5470-5560
For Sensex
Last Close: 18145
Buy Above: 18215
Sell Below :17985
No trade if Nifty is between 17985-18215
These trades are For Several Days time horizon,not for Intraday trades .
Nifty Sensex are in Sweet Spot now.Movement in any direction will fetch good returns.Feeling is that it will go down,but do not trade on feelings,concentrate on price points.
Happy Investing
Now Nifty and Sensex have given the correction
Most of the technical analysts were predicting this from 5400 levels
Now there is a feeling among them "See I was right.I already told about the correction"
But What Now?
Image By:Ron leishman
Should you buy the dip as in Bull markets or Should you short sell as it may be the start of big down move
First See the Charts
Nifty
Sensex
First Lets analyse the charts
See the Big Volume associated with Downfall which is second Highest Volume in last 3 months.now this is a danger signal.
Lets concentrate on ADX too.ADX is in unusually High Range(Excess of 70) and started downward slope.
FII have Sold Worth Rs 1040 Crore in index and Stock Futures.
In cash markets DII have sold stocks worth 1332 Crores while FII have bought Stock Worth 832 Crorores only
Technically Nifty Sensex are in mess.
Should you Sell?
Certainly do not do at current levels
Watch Sensex and Nifty First
If Nifty Dips below 5471 and remains there for Some Time, Initiate Shorts With Stop loss of 50 points in Nifty.Better option will be wait till 1.30 PM or 2 PM before initiating Shorts .
Cant it Rise from Current levels?
Allthough probability is low still it can.
Buy above 5560 if stays for 30-40 minutes.Do not try to short at 5550-5560.A move above those levels will imply that the correction is over.
In Nutshell
Nifty Last Close: 5505
Buy Above: 5560
Sell Below :5470
No trade if Nifty is between 5470-5560
For Sensex
Last Close: 18145
Buy Above: 18215
Sell Below :17985
No trade if Nifty is between 17985-18215
These trades are For Several Days time horizon,not for Intraday trades .
Nifty Sensex are in Sweet Spot now.Movement in any direction will fetch good returns.Feeling is that it will go down,but do not trade on feelings,concentrate on price points.
Happy Investing
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