Nifty update

If 6020-30 is not crossed in Nifty futures, expect a decline to 5890—5900, and
if that is breached, we might not see 6xxx in Nifty futures soon.

What does PCR suggest

PCR at 6000 strike price is just above 0.5 (the yellow line in the chart below),

and there has to be a build up of puts

at 6000 strike price and also short covering of 6000 Ce for this PCR to rise.

Till then bears will try hard to defend 6000.

 

Nifty update – 5960 spot crucial

If 5960 is crossed, expect 6120 or even 6200 which is the target for the pattern.

 

Crystal ball gazing

If Nifty has completed the decline from the high of 6142, there can be a retracement to this move starting tomorrow or Friday.

This retracement is expected to go towards 5940-5960 or 6010 – 6035, from where the downtrend can start all over again.

How does one trade the next downtrend if it starts – Options charts will provide the answer !

If 6050 is not crossed, I expect the next downward target to be below 5500.

 

 

Nifty was all over the place, but this behaved

The 5900 (PE + CE) - short near 95 trade went all the way to 57 by close today.

Watch 40-45 tomorrow, from where it can bounce, and below that 20-25.

Generally, this bounces from 20-25 in the last hour before expiry.Watch out !

How basic TA works even on Options charts

I had posted this chart on 18th September for a possible trade in Sep 5900 PE here .

It is a different story that the market gapped up and the Put gapped down.

The updated chart of this Put is shown below, and it proves how old supports become

resistances.

 

Potential multi-bagger trades in October Options (aka lottery)

The market has got sold off after the RBI policy in 2 days, and now on hourly charts
looks oversold.
A bounce can come in Nifty and this can be traded (with sl below 65)


Subsequently, when October puts go down on this rise, 2 potential
multi baggers for October series  as shown below
October 5500 PE :


and October 5600 PE:

One for the bulls

Earlier today, I came across an article comparing the chart of Sensex with that of the South African Index.
Both shown below:





At first sight, both look very similar, and bulls can hope that the Indian market does what the South
African market has done.
However, one needs to also keep in mind the following 2 charts – those of the respective
currencies against the USD, and in my opinion, there lies the difference.



I conclude from the above, that as long as INR is behaving the way it is, and as long as Sensex is below the
all time high, the risk: reward ratio at this stage is in favour of the bears than the bulls.

A quiz

Guess this stock – the DAILY chart somewhat resembles the map of India.
Post answers in comments.

Tata Motors update – Hai himmat ?

I had posted a monthly chart of Tata Motors on 12th September.

For anyone who believes this chart, now is the RIGHT time to take the positional short,

with stop loss on monthly closing above the long term trend line.

Hai himmat?