Friday, April 13, 2012

#116 Nifty Update" "Friday the 13th" for investors

It was nightmare for all the traders today on the Floor. Indeed it was the Black friday or you may say it proved to be unlucky 13th the Friday. Morning was greeted with below expectations INFY result and worst guidance by the company. Global markets were fairly strong almost 1% while SGX NIFTY was trading near to 5335. Pre-Open clearly suggested that we may see some pressure in the market due to INFY result but global market support would lead the market in positive zone. We saw the same thing happening, after being in negative zone, after 9.30 we saw market again in bullish mode. But as i had mentioned on my twitter @niftybykush 5305 was important resistance and so did NIFTY resisted near to 5306. At that moment investors thought that we were safe from unlucky "13th Friday" and than in just few seconds we saw heavy selling and NIFTY drifted to 5185 from high of 5306 in just 5 mins!!!! OH WHAT THE FUCK?? .......Even i dont know what was the case..But i feel it was the late effect of two major fundamental problem 1) Weak Infy result and 2) Revision of IIP numbers for Jan....How can a government make such a blunder?? FII were investing as they were positive on IIP numbers but that proved false numbers and may be we saw selling on that part today. Technically speaking , as u all can notice on the chart we are trading through a "descending triangle" which is a consolidation pattern and which means prior trend i.e., bull in our case will be back in action on breakout. But the indicator suggests that triangle may prove to be a reversal pattern which is rare but it can be true. If we see 5169 being broken than we can get 4663 on NIFTY. While on positive note we can see 100 may cross over 200 SMA which will be long term bullish and triangle will be given upside breakout at 5330. But taking support of indicators, i would suggest still hold your SHorts which i had recommended with stop loss of 5330. Add more shorts below 5146 and be long above 5360. Till than see ya!!!!!

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