MARKETS FOR 31 AUGUST

 THE WAY NIFTY BOUNCED BACK  TO 5343 SPOT  DURING THE CLOSING 30  MINUTES AFTER MAKING THE INTRADAY LOW OF 5255 ON THE EXPIRY DAY IS A CLEAR EXAMPLE OF AN  IDEAL BULL TRAP RIGHTLY SET UP BY THE EXTERNAL OPERATORS TO TRAP THE BULLS ON THE LAST DAY OF THE MONTH. FROM THE JULY MONTH EXPIRY DAY MANIPULATED LOW OF 5032 TILL AUGUST MONTH HIGH OF 5448, NIFTY HAD BREACHED THE 38.2% RETRACEMENT LEVEL 5289 TO REACH TILL 5255. THE 50% RETRACEMENT COMES AROUND 5240 SPOT LEVELS WHICH NIFTY SPOT SHOULD

MARKETS FOR 29TH AUGUST

THERE IS  NO CHANGE TO WHAT  IS WRITTEN  BELOW ABOUT THE TRADING TACTICS TILL EXPIRY. LEVELS ARE NOT IMPORTANT BUT WHAT IS IMPORTANT IS HOW RUTHLESSLY ONE CAN SHORT THE FUTURES AND CALLS AS LONG AS NIFTY SPOT CONTINUES TO TRADE AND SUSTAIN BELOW 5360 TO 5365 ZONE. ANY AMOUNT OF INTRADAY RISE TOWARDS THIS ZONE WHETHER NEARER TO THIS ZONE OR FAR OFF FROM THIS ZONE MAY BE BRUTALLY SHORTED WITH PUNITIVE FORCE WITH A STOP LOSS ABOVE THE SPOT NIFTY ZONE OF 5360 TO 5365, ONLY  TO REVERSE FOR GOING LONG ABOVE THIS ZONE.

MARKETS FOR 28TH AUGUST

NIFTY SPOT HAS CLOSED AT 5350. JUST CLOSE YOUR EYES AND SHORT THE  MARKETS ON EVERY INTRADAY RISE TOWARDS 5400 SPOT AS LONG AS SPOT NIFTY CONTINUES TO REMAIN  BELOW 5400. HAVE STOP LOSS A FEW POINTS ABOVE 5400 AND TRADE SHORT DAILY ON EVERY INTRADAY RISE. BIG OPERATORS ARE DETERMINED TO HAVE THE EXPIRY CLOSING CERTAINLY BELOW 5400 AND MORE LIKELY TOWARDS 5300. ONE MAY RESORT TO BRUTAL SHORTING IN CASE SPOT NIFTY SLIPS BELOW 5340 AND IS UNABLE TO RISE ABOVE IT OR AFTER A RISE AGAIN FALLS BELOW 5340 SPOT.
Traders should incorporate their own safety mechanism and stop loss in trading in order to avoid loss. 

MARKETS FOR 27TH AUGUST

NIFTY ENDED THE WEEK ON A MILDLY BULLISH NOTE AT 5386 COMPARED TO PREVIOUS WEEK ENDING 17TH AUG AT 5366 SPOT, THUS  MAKING IT THE 4TH CONSECUTIVE WEEK OF BULLISH CLOSINGS. THE WEEK GONE BY ALSO MADE A HIGHER HIGH AT 5448 & A HIGHER LOW AT 5369 COMPARED TO WEEK ENDING 17TH AUG HIGH OF 5400 AND LOW OF 5341.  CANDLE LOVERS WILL NOTE THAT THIS WEEK

Open Interest & Price Action Co-relation

What is Open Interest? 

•Open interest is the total number of open contracts on a security, applies primarily to the futures market.

• Open interest is a concept all futures traders should understand, because it is often used to confirm trends and trend reversals for futures and options contracts.

• Although this number often gets lost as traders focus on bid price, ask price,

MARKETS FOR 24TH AUGUST

AS EXPECTED NIFTY AFTER REACHING AND BREACHING THE PREVIOUS DAYS HIGHS  CORRECTED AND OUR PRINCIPLE OF RUTHLESS SHORTING THE MARKETS AFTER NIFTY FUTURE BREACHED THE WEDNESDAY’S HIGHS OF 5455 TO REACH 5460 YIELDED HANDSOME GAINS. FOR NEXT FEW DAYS THIS GOLDEN PRINCIPLE OF SHORT ON RISE SHOULD BE ADOPTED AS PRESENTLY NIFTY IS IN A PAUSE MODE AND LIKELY TO

MARKETS FOR 23RD AUGUST

NIFTY FOR NEXT COUPLE OF DAYS IS LIKELY TO BE IN A PAUSE MODE THAT WILL HELP INTRADAY TRADERS TO  GAIN BY SELL ON RISE PRINCIPLE. HOWEVER THIS PAUSE OR LOSS OF MOMENTUM IN THE MARKETS IS A PRE CURSER TO ANOTHER BIG MOVE AFTER THE PAUSE IS OVER. SO, FOR INTRADAY TRADERS THE BEST PRINCIPLE IS TO WAIT FOR A RISE TOWARDS OR ABOVE THE PREVIOUS DAY’S HIGH TO INDULGE

MARKETS FOR 22ND AUGUST

NIFTY MOVED UP AS PER EXPECTATIONS AND THE RISE ABOVE ALL NEAR TERM  BARRIERS TO MAKE A DAY HIGH OF 5425 SPOT LEVELS & TO CLOSE THE DAY AT 5421 SPOT ALTHOUGH TECHNICALLY LOOKS HIGHLY BULLISH, YET IT HAS THE HIDDEN ELEMENT OF AN IDEAL BULL TRAP ATTACHED WITH IT TO PERHAPS TRAP THE OVER ENTHUSIASTIC  BULLS WHO CARRIED THE OVER NIGHT LONGS WITHOUT REALIZING THE  OVERNIGHT DITCH THAT WAS  BEING  PREPARED BY DOW OPERATORS. IN SPITE

MARKETS FOR 21ST AUGUST

IT WAS ANOTHER BULLISH WEEK FOR NIFTY MAKING IT THE 3RD CONSECUTIVE WEEK OF HIGHER HIGH, HIGHER LOW & HIGHER CLOSINGS THUS MAINTAINING BOTH THE BIAS & MOMENTUM ON THE BULLISH SIDE. THE TRUNCATED WEEK WITH THE HOLIDAY  ON WEDNESDAY 15TH AUG STARTED WITH A BANG WITH BOTH MONDAY & TUESDAY MAKING SUBSTANTIAL GAINS. HOWEVER   BOTH THURSDAY & FRIDAY WERE

Fears in Trading

1. Trading is never certain. We trade on probabilities. based on our charts and analysis, we feel that Bharti Airtel share price should come down. So, we take a trade on the short side.Remember, we can never guarantee that price will fall. No chart pattern can give such an assurance. What we

Five Tips For Online Trading

You should start with brokers who have a physical presence to help you with the basics, even if they charge a higher brokerage.

Interest in trading has gained momentum because of the recent rise in stock prices. Both old and new investors have jumped to trading stocks online. Here are 5 things to keep in mind when you trade online.

CHOOSING THE BROKERAGE

A brokerage firm offers you a platform to buy and sell stocks at a cost (brokerage).

You will need to choose a broker who offers you an online trading platform. To begin with, till you understand the nuances of online trading, it would be wise to start with brokers who have a physical presence to help you with the basics, even if the brokerage charged by them is higher. Once adept at online trading, you can move to brokers who stay completely online and offer you a fast and reliable trading platform at a fraction of the brokerage you pay to brokers who operate through branches. Before starting with any broker, verify their track record.

TRADING PLATFORM

Most online brokers today offer you 3 types of trading platforms — Software-based, Web-based and Mobile-based.

Software-based would be the best option. This would need a good system and Internet speed for optimised performance. Some brokers might ask you for software usage fees or daily turnover commitment to let you use the software version. It is best to stay away from such brokers.

Web-based would be an ideal option if you work in an office which doesn’t allow you to install an external application, or you have to work behind firewalls or if your Internet speed is not good.

Most of the Web-based platforms would require Java to be installed for watching live streaming quotes. Few brokers have started to offer Web-based tools which work on html5. This gives you a software-like interface, but would work in almost any environment.

Mobile trading will most likely be the preferred way of trading in the future. Most of the brokers today offer mobile applications which will work on any smartphone. It is a must have for people who want to invest/track stocks on the go.

ONLINE BANK ACCOUNT

Unlike offline brokers who might let you buy stocks without funds in your trading account by presenting a cheque, online brokers require you to have funds upfront before you can take a trade.

Funds can be transferred to your trading account either through cheque, instant payment gateways or NEFT/RTGS. Cheques may take many days to clear and without clear balance in your account an online broker would not let you trade. NEFT/RTGS can take 2-8 hours for the funds to reflect in your trading account. The preferred way to transfer funds would be through the online instant payment gateway provided by the broker on the trading platform. This will ensure that you are able to buy stocks immediately, which will be critical when an opportunity arises.

Not all banks may be enabled on the instant payment gateway with your broker. Typically a broker will have tie-ups with around 20-30 banks.

MONITORING TRADING ACTIVITY

As an online trader, all trading reports would most likely be sent to your email and not as a physical copy. The 2 reports which have to be sent to you mandatorily are:

Contract Note: Digitally signed contract on the trades executed by you and the corresponding charges.

Margin Statement: Statement showing how your trades and positions have affected your cash margin.

Both the reports should be sent to you within 24 hours from the end of trading day.

The most important aspect of trading online is to exercise caution as it is very easy to get carried away and overtrade. With instant access to your bank accounts, there is a risk of you being undisciplined and taking more risk than what you had planned at the spur of the moment. Start small, learn and gradually increase the size of your trading account.

The Inner Voice of Trading

The Inner Voice of Trading by Michael Martin

Ed Seykota, well known technical trader, in his foreward to the book says "Traders know the essential principles of trading: ride your winners; cut your losers; manage your risk; use stops; stick to your system and ingore the news. These principles work well in

MARKETS FOR 17TH AUGUST

THIS WEEK NIFTY SPOT ALSO BREACHED THE EARLIER 10TH JULY SWING HIGH OF 5349  TO REACH TILL 5277 SPOT LEVELS, BUT THE LAST 3 CONSECUTIVE DAYS OF MILDER FALLS SAW NIFTY CLOSING THE WEEK AT 5320 STILL LOWER THAN THE 10 JULY CLOSING HIGH OF 5345. SO, IRRESPECTIVE OF ANY AMOUNT OF INTRADAY TOWERS MADE BY NIFTY,  AS LONG AS IT FAILS TO CLOSE ABOVE THE PREVIOUS CLOSING SWING HIGH OF 5345 OR MORE IMPORTANTLY ABOVE 5349, EVERY INTRADAY RISE

MARKETS FOR 16TH AUGUST

NIFTY CONTINUED WITH ITS UPWARD MARCH AND HAS DECISIVELY BREACHED ITS EARLIER SWING HIGH OF 5349 TO FINALLY CLOSE AT 5380 MUCH ABOVE THE CRITICAL LEVEL OF 5349  SPOT. NOW IT NEEDS TO DECISIVELY BREACH AND CLOSE ABOVE THE NEXT HIGH OF 5386 THAT WILL CLEAR ITS PATH TOWARDS THE NEXT TARGET OF 5499 WHICH WAS THE HIGH OF 14TH MARCH 2012 .  AS CAN BE SEEN IN THE CHART THE CRITICAL LEVEL OF 5386  WHICH WAS THE HIGH OF  22ND MARCH  IS THE MOTHER

MARKETS FOR 14TH AUGUST

THE RISE ON MONDAY AFTER THREE DAYS OF PAUSE SEEMS TO BE THE INDICATION FOR THE RESUMPTION OF THE UP MOVE. HOWEVER AS LONG AS SPOT NIFTY IS UNABLE TO CLOSE ABOVE THE EARLIER SWING HIGH OF 5349 ONE NEED NOT BE SURE OF THE UP MOVE. A DECISIVE BREACH OF 5377 SPOT  AND A CLOSE ABOVE THIS 5377 SPOT ZONE ONLY WILL CONFIRM THAT MUCH MORE UP MOVE IS IN STORE FOR NIFTY

MARKETS FOR 13TH AUGUST

NIFTY EVEN AFTER THREE CONSECUTIVE DAYS OF NEGATIVE CLOSINGS, STILL MANAGED TO CLOSE 2% UP AT 5320  COMPARED TO PREVIOUS  FRIDAY OF 3RD AUGUST CLOSING OF 5215 THUS MAKING IT THE 2ND CONSECUTIVE WEEK OF BULLISH CLOSING AFTER 3 CONSECUTIVE WEEKS OF NEGATIVE CLOSINGS FROM  10TH JULY HIGH OF 5348 TILL THE  EXPIRY DAY 26TH JULY MANIPULATED LOW OF 5032.

MARKETS FOR 10TH AUGUST

 NIFTY FOLLOWING THE GREEN HAMMER OF LAST FRIDAY HAD A BIG GAP UP ON MONDAY FOLLOWED BY THE MONSTROUS  BULLISH CANDLE OF TUESDAY.  HOWEVER WEDNESDAY & THURSDAY SAW BEARISH CANDLES BEING FORMED WITH THE PIN BAR OF WEDNESDAY & THE BEARISH ENGULFING OF THURSDAY. INABILITY ON THE PART OF THE TIRED BULLS TO  HAVE A DAILY CLOSE ABOVE THE EARLIER SWING HIGH OF 5349 EVEN AFTER TAKING NIFTY AS HIGH AS 5377 ON WEDNESDAY & 5368 ON

MARKETS FOR 9TH AUGUST

AS WAS MENTIONED ON WEDNESDAY, NIFTY ALTHOUGH MOVED UP TILL 5364, YET FAILED TO CLOSE ABOVE  THE CRITICAL GIVEN  LEVEL OF 5353. IT WAS  BROUGHT DOWN AFTER 2.20 P.M.  TO REACH A DAY LOW OF 5330 TO FINALLY CLOSE NEAR THE LOW OF THE DAY AT 5338 IN THE FORM OF A DEADLY PIN BAR. WELL, REMEMBER TRADERS, THIS DEADLY PIN BAR  IS GOING TO REMAIN AS A STUMBLING BLOCK FOR INDIAN STOCK MARKETS AND AS LONG AS THIS PIN BAR HIGH OF 5464 IS NOT DECISIVELY BREACHED AND MORE IMPORTANTLY SPOT NIFTY DOES NOT HAVE A DAILY CLOSE

MARKETS FOR 8TH AUGUST

WELL, THE MARTIAN TUESDAY OF 7TH AUGUST WILL BE REMEMBERED FOR MAY WEEKS AS NIFTY SPOT  NOT ONLY HAMMERED  & KNOCKED THE STEAM OUT OF THE  11TH JULY HIGH BUT ALSO TESTED & BREACHED THE 10TH JULY HIGH OF 5349 TO REACH TILL 5350. HOWEVER THE CLOSURE OF SPOT NIFTY AT 5336 JUST BELOW THE 10TH JULY CLOSING OF 5345 MAY DISHEARTEN  THE BULLS A BIT BECAUSE AS LONG AS SPOT NIFTY DOES NOT DECISIVELY CLOSE ABOVE THE SWING HIGH OF 10TH JULY AT

MARKETS FOR 7TH AUGUST

AS EXPECTED NIFTY OPENED GAP UP  AND AFTER THE GAP UP IT  MADE A DAY HIGH OF 5293, REMAINED IN A TIGHT RANGE TO FINALLY CLOSE AROUND 5282. ALTHOUGH SPOT NIFTY BY REACHING TILL 5293 COULD CLOSE THE BIG GAP OF 10TH JULY TILL  5282, YET IT COULD NOT DO ANY HARM TO THE  11TH JULY LOW of 5300, HIGH IS AT 5336 AND CLOSE IS AT 5306 SOPT. TRADERS & INVESTORS MUST KEEP IN MIND THAT AS LONG AS THIS NAUGHTY CLOSE OF 11TH JULY REMAINS UN HARMED, NIFTY WILL

MARKETS FOR 6TH AUGUST

AFTER THREE CONSECUTIVE WEEKS OF FALLS FROM  10TH  JULY HIGH OF 5349 TO THE 26TH JULY EXPIRY DAY LOW OF 5032, NIFTY RESUMED ITS UPWARD JOURNEY LAST WEEK TO CLOSE THE WEEK AT 5216  ABOVE BOTH THE 34 & 50 WEEK EMAS. THE 3 WEEKS OF FALL WAS THE ‘ABC’  ZIGZAG CORRECTIVE WAVE TO THE 5 CONSECUTIVE WEEKS OF RISE FROM 4TH JUNE LOW OF 4770 TILL 10 TH JULY HIGH OF 5349. MOST

MARKETS FOR 3RD AUGUST

AS PREDICTED YESTERDAY, NOTHING CAME OUT OF ECB MEETING & INSTEAD IT STRENGTHENED THE HANDS OF DOW  OPERATORS TO BOLDLY SHORT THE WORLD MARKETS THAT WILL SEE THE ASIAN WHIPPING BOYS DANCING TO THE TUNE OF DOW OPERATORS ON FRIDAY & MONDAY MORNING. EVEN THE NON FARM PAY ROLL DATA TO BE OUT IN U.S. ON FRIDAY NIGHT WILL BE MANIPULATED TO  DEPICT WORSE

MARKETS FOR 2ND AUGUST

 LIKE THE RBI GOVERNOR, EVEN FED DREW BLANK ON WEDNESDAY NIGHT AND LIKE THE INDIAN MARKETS, EVEN DOW DID NOT FALL MUCH, PERHAPS THE DOW OPERATORS ARE  PRESERVING THEIR SHORTING ENERGY FOR THURSDAY OR FRIDAY NIGHT. FOR INDIAN MARKETS ONE MAY EXPECT THE CONDITION SIMILAR TO WEDNESDAY WITH A NEGATIVE