Nifty Views

As I said in my post "learning from mistakes" about the Fibonacci levels of 3117 (50% retracement), we took support at those levels and  reversed from there only fibo level were 3117 and yesterdays low on nifty future was also near about same level.So is this the bottom ??? To me bottom would be when we stop testing the bottom again and again. Right now as i said earlier also lets take each step at a time 3400..3600..3800..4000. These are very very optimistic figure for any body in short term trading. Beyond this no optimist would be thinking as of now.I feel that we will go down once again after the rally to test the 3000 figures and then we would finally start the new trend.

Let's take a look at yesterdays 5 min chart now.

Looking at the Yesterady five min chart there was a clear Divergence and along with that the MACD gave positive cross over and RSI were also giving the buy signals, I didn't dare to buy as last few times i made mistakes in haste but paper trade and that was an absolutly fantastic trade. It gave a rally of 200 pt from my by buy levels (bought at 3130). Divergence always gives good results this is what i have read in most books. Percent of success is also very good in divergence says few good TA's.

please take a look at the few companies in my post (click here) which are good fundamental buy and also long term buys. I feel that these companies should be the aggresive buy when we test the lower levels next time. If we dont break the current bottom levels by good margin then that would be the bottom or else 2006 bottom level that is around 2800 levels can be support if that is broken then last would be our next fibonacci levels 2450 approx (61.8% retracement)

For now we are in a pull back mode, all bad news left to come are already discounted by the market I feel. Be cautious trade small quantity, be happy with the small profits. 

Wish you all the happy trading.

"Life is just a blank slate, what matters most is what you write on it"--Christine Frankland