Nifty current move is not very clear. It is not easily labeled. However looking at the overall structure, it may be termed as wave 4 of 3 of 5 as discussed yesterday. It made a low of 5356.85 a 0.80 points above the wave 1 termination point. Till it is above 5356.05 the current labeling holds good. This is the stop loss or negation point for us now. Rest of the labeling and trend, target all will remain the same as discussed yesterday.
One very important point need to be observed is hourly KST or 9 RSI and 35 D have given a -ve divergence. This is a concerning factor at this stage. Even with this we may still make another vault to somewhere near 5400 level, which will not violate the -ve divergence.
Nifty Elliott wave labeling on daily chart:
Nifty Elliott wave labeling on hourly chart:
Nifty Elliott wave labeling on 5 min chart:
Nifty 9 RSI (maroon color) and 35 D (blue color) chart:
One very important point need to be observed is hourly KST or 9 RSI and 35 D have given a -ve divergence. This is a concerning factor at this stage. Even with this we may still make another vault to somewhere near 5400 level, which will not violate the -ve divergence.
Nifty Elliott wave labeling on daily chart:
Will market see some profit booking on Monday or open 100+ points up and see 6000 by this expiry also. I bought 3 Lots of PE and I am afraid that I am going to lose all money on Monday. Shud I buy 5700 CE for target 150+ in 1-2 days? Please advise.
ReplyDeleteRegards,
Akash
Dear friend - Market may not correct too much. Details can be observed from the today's Elliott wave labeling at http://nifty2wealth.blogspot.com/2012/09/nifty-elliott-wave-analysis-for-17-09.html
ReplyDeleteHowever it will surely correct to a small extent. Now with respect to your position on the PE, it depends on which strike price and what price you have bought it. If it is near 5500 or 5600 then you may able to recover good amount of your capital today or even turn it into profit. However keep a very low profile on this. For the short term (next couple of days) market may climb high.
I do not see it going to 6000 level for the expiry. Then market will not listen to my words :-)
So let us get the feedback from market on real time and adjust ourself for the 'NOW' factor.
You can think of buying the CE on dips.
Thanks. I sold PE and bought 5700 CE. but that is also down. shud I buy 5800 CE as well for target 50-55 and hold 5700 CE for target 85-90 in 1-2 days. I made a big mistake by selling 5500 CE at 80 while it is at 160 now. Pls help me recovering this loss...
ReplyDeleteI would suggest, you may wait for some more time before jumping in on another trade. It is very difficult thing to do, but will reward. Until then you may do paper trade.
ReplyDeletePlease refer to latest observation - http://nifty2wealth.blogspot.com/2012/09/nifty-intraday-update-17-09-2012.html
Sir. As market was going down so I sold CE and bought 5 lots of 5500 PE. I am in big loss so want to cover it ASAP. At this point of time, do you think market may go down to 5500 level in 1-2 days? Shud i hold CE or what to do? By selling 5500 CE too early, I made one of the biggest mistake of my life... Pls help me..
DeleteHi Sir. Please let me know your name and if you don't mind, can you please tell me your Email ID so that I can email as well as to get any guidance. Thanks.
DeleteAkash - Please calm down. Take a deep breath.
ReplyDeletePlease understand that market do not owe us anything. Our trade is not intended to cover any loss of the past. It is just another trade. Each trade starts when we open a position and ends when we close it. Thats it. No more no less. Forget about the past trade and get ready for the new one. Never indulge in over trade or revenge trade. That will only lead us to loss and mounting losses.
Each trade has its own potential. Just that we want to cover a previous loss, that we expect the market to go to a certain level, it can not.
Be calm and follow your study. I trust you are trading based on your technical analysis. So have faith in your study and follow it strictly.
To be really frank, I do not know where the market will be next moment or next hour or next day....
All our technical analysis are just guidelines and we should quickly able to adjust to the changing market. Market will give clue at every moment. So we should have a trading plan which is flexible enough to take the new findings from the market.
Have a stop loss point either market point wise or money % wise to preserve the capital.
For the next few days, the guidelines are provided in today's post http://nifty2wealth.blogspot.com/2012/09/nifty-elliott-wave-analysis-for-17-09.html
But remember, they are just guidelines. Market may swing any where and we should be prepared to adjust to it.
Subscribe to the blog from top right corner "Subscribe via email" and you will get the details to contact. I do not like to post the email id on the web to avoid spammers.
ReplyDeleteSir. I made almost 35k loss in Axis Bank 1100 CE. I bought 3 Lots of AB 1100 CE at 8.5 Rs avrg price and sold at 10 Rs. only. Now is it near 50. I wish I had not sold too early but it closed at 5 Rs. so as soon as it was up, I sold that.. Made a real big mistake and big big loss. It is still going up. Can I buy 1180 CE or 1200 CE for 45-50 target in this expiry? Or SBI 2400 CE for same kind of target? As of now I am holding Exide 150 CE but I don't think it can see 20-22 in this expiry. Pls help me recovering 35k loss which I made in single day. Shud I buy Axis bank CE or hold Exide CE for target in 22 in this expiry? Thanks.
DeleteSir. 1100 CE for Axis Bank is now above 72. So my loss is now near 60k. Pls advise how to cover this loss in 1-2 days? Can I buy 1250 CE Axis Bank Sep for target 70+?
DeleteThanks Sir. Due to huge loss, I tend to do over trade and revenge trade. As I bought 5500 CE at avrg price of 24 and sold at avrg price of 65, but when I saw that it is going up and up only, I bought 5600 CE but sold the same when it was 5-6 rs. down and bought PE which I sold again which was almost half price in the monring and bought 5700 CE but sold that as well as bought PE again.. Now PE is going down also... Due to huge loss and feeling that I could have made much more profit than what I made, I always make loss finally... Pls help me recovering this loss.. I have 5k to invest finally and I want to have min 5-6 times profit in 1-2 days.. If I can make this profit, then can stop Intraday and Options trading and can think something else properly..
ReplyDeleteI subscribed to your blog already.
Dear friend Akash - I do not track Axis Bank and hence don't know its position. Hence I may not able to comment on the merits of your suggested trade.
ReplyDeleteI can say only one thing at this stage. Please stop expecting market to cover your losses. Market is not there to cover the loss. It can only give us opportunity to make a trade. Based on the merits of the trade and the strength of the market in that direction, it can move upto the extent. Even if we wanted market to move few more points to cover our loss or our expected target, it can not move unless it want to. So we have to have a very reasonable expectation from the market based on our chosen method of technical analysis. Also cover the position or trial the stop loss or book loss accordingly.
One more piece of suggestion - first use futures with very small quantity to get as much experience in the market as possible. Once you are very comfortable with it, then start venturing with the options. Options provide a larger leverage and are priced low, if not handled properly they will act like weapons of mass destruction and has the potential to wipe out the entire capital.
Thanks Sir. I wish I cud cover some loss in 2 days but I missed a chance and may not get such chance even in my life.. Anyway, I have seen mcDow-N jumps 100+ Rs. today. Can i buy a CE of that. Also, Exide CE is going down and I am in big loss there. Shud I sell and buy McDow or some other CE/PE. Pls advise some call which can cover some of my loss at least... Thanks.
ReplyDelete