Nifty in Panchamam again

Nifty today (30th March 2009) opened 71 points down and continued to move downwards and at 3.20 p.m. it reached 147 points down. At closing it was at 2978, loosing 131 points from the last closing. As last Friday closing of Nifty at 3109 was below the Agni level of 3118 and %k of stochastic was at 96 there was high possibility for a fall as mentioned in the last post. The fall is likely to continue tomorrow also even though Mutual Funds will try to salvage as it is the last day of the current financial year.

Todays Nifty Futures High and Low was 3067 and 2971 having of difference of 96 points which is divisible by 8/16. The difference is 6 Annas.

Upward space limited

There is no change in the view expressed in the last post dated 26th March 2009. Let us see whether Nifty is able to cross Sudha Daivatham (3263)or not. As %k of slow stochastic value is at 96, upward space is very limited and possibility of downward move is more. As usual exit longs when Nifty touches Agni level (confirmation only after crossing of 8 points).

Last Friday(27th March 2009) also difference between high and low of Nifty futures rounded off to nearest rupee was divisible by 8 and 16. The figures were 3140 - 3060 = 80 which divided by 16 gives exact 5. (Divided by 8 gives 10). Feed back on this is yet to be received. May be observation is still going on.

Nifty in Sudha Daivatham

After January 2009, Nifty has today moved to Sudha Daivatham band width (low:3077, Center:3178, high:3263). Sudha Daivatham is a very important turning point for Nifty as that was the Nifty maximum level reached in January 2008. Present center point of Sudha Daivatham (3178) is exactly half (50%) of the Nifty maximum of 6355 reached in January 2008. Thus, if Nifty moves up as was for the last 4 days then we may not see another bottom than the October 2008. Shadjam point in Medam/Edavam (April/May) may be 3968 instead of 1984. But, considering the General Election being held in April/May 2009 any such assumption will be premature now. But, during the last 12 sessions USA index DOW JONES has climbed from 6400 levels to 7800 levels indicating the change in the financial situations in USA. Indian market is delaying its up trend only due to the General Elections here. However, FIIS have started buying stocks for the last six sessions.

Therefore, don't expect "Exceptional Friday" effect tomorrow (27-3-09)- perhaps it may be the opposite to it as Nifty has gained continuously for the last 4 days. Trade with caution.

Nifty again below Agni level.

Nifty rally dissipated at 12.00 noon around 3020 and the fall there after was very steep losing all gains of the day and closing near yesterday closing. Actually Nifty slid to 2915 and the averaging alone improved the closing to 2939. Tomorrow's (25-3-09)Agni level is at 2953 and it is above the Nifty closing today. So exit longs if Nifty does not move above 2953.

Unique upmove !!!

Nifty's up move today (23-3-09) was unique - gap up opening of 57 points and steady increase with out retrace(did not came down 16 points any time today)and close at 2940 with a gain of 133 points. Panchamam center point is 2976 which is just 36 points up from the closing level. So, next days up move may be to Sudha Daivatham level ( bottom : 3077, Centre : 3178, top : 3263). Yesterday Nandi wrote that the direction of the next move is not clear. By gap up opening above the Agni level at 2850 Nifty's intention to move up was declared. Only question left was up to which level. The highest point of 2950 reached today was beyond the expectation of many. Always remember that the market is the King. What traders can do is just move in the direction of the market by using Agni level as the pointer.

Patience is another name for courage.

Be patient. For the last three days market was asking us just that. Nifty is hovering around 2800. Whether it will cross Prati Madhyamam (2821)and move to Panchamam (2976) or slide down to Anthara Gandharam (2480) is not yet clear. At present what is known is Agni level for Monday is 2850 and as far as Nifty is below Agni level the chances are more for a down fall. Then there is a possibility of a up move in Nifty at the end of the financial year (27-31 March)as Mutual Funds artificially lift the prices of their stock holdings so that a better performance record can be presented before their customers - present and future. Nothing more to add now.

Last Friday (20-3-09) Nifty Futures performed exactly what is expected of. The high and low was 2813 and 2765 giving a difference of 48 which is exactly divisible by 8. And it was divisible by 16 also and the difference was 3 Annas. Nandi feels that it is like a journey and the journey itself is more important than the destination. Enjoy the journey.

Nifty closing below Agni level

Today (17-3-09) Nifty closed at 2757 which is below the Agni level for tomorrow at 2810. If Nifty do not move above 2810, exit all longs. Today's Nifty high was 2806.