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Thoughts for the Day

December 24, 2008

Location:India
Market:NSE
Instrument:MINIFTY-December contract
24th December 2008,12:42PM

Scrip really choppy. Flat! Wonder who is trading?

12:45 PM:

My data feed has gone to sleep in anticipation of the sleepy markets. Good for consolidation patterns, bad for me. So bulls, is the relief  rally over?Reading the story of an IIT-ian turning to farming.

1:22 PM

I normally don’t deal with 2 minute charts, but the 2 minute volumes are atrociously low. It gives out one signal and one conclusion. One, the volume is too low to sustain any movement. It can be too easily countered by the opposing forces. And also, if there is one guy who has the power, he can easily start a rally. So, it is too easy for a pro to start a rally, when everybody is sleeping like now. As somebody said, pros make money when amateurs turn sleepy.

1:30PM

Did a saddle with triggered futures. I dont know will it work out or not. Lets hope it will.

1:47PM

Official Circular of lot revision for March contracts: Futures

1:55PM

Downside breakout, a downside gap, but pros quickly faded it.

2:09 PM

Not much breath in downside breakout… vague premonitions coming to mind. Bulls resisting hard, at 2921-2925ish

2:13PM

It was a false breakout. Executed SL. Good experience for learners

2:32PM

The congestion area has shifted downwards. Slight bearish bias.

3:05PM

Had earlier entered a triggerred SELL order at 2923, but jumped the order. Did not fill.

3:09PM

Today is the expiry, as well not much time for exchange close. Cancelled the order. Dont want myself to be caught with settlement with an expired future!

3:12PM

On hindsight, this is an excellent bearish setup. Breached a support with a gap, faded the gap and went onwards its journey towards bearishness.

3:20 PM

Might see a close above 2920 levels. Today is the last day of the FNO December contract. So short covering will take place. Which leaves the entire setup at an interesting level. 2920 being a support, will see quite some passion from bears and bulls. January contract is yet to hit any important levels. Contango in place. Its trading at Rs 20/- premium. NIFTY grazing 2921 levels.

3:30PM

NIFTY shut shop at 2928.December Futures close at 2916.It was an excellent learning day for beginners. Had an extremely range bound session. Post lunch broke a critical support level, only to meander away and reenter the congestion area. And towards close, under the pressure of pros slided away 20 points, breaching extremely strong resistances.

Some good links, to watch over:

Bilateral Trades

False Breakouts

Recognising and trading breakouts:Good Breakout vs Bad Breakout


NIFTY on 24th December 2008

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