Indian Markets Futures Trend Update - 07 January 2011

Nifty Futures
Swing : DOWN
SAR : 6180
Low risk entry : 6125
Target : 6030
Bank Nifty Futures
Swing  : DOWN
SAR :11700
Low risk entry : 11480
Target :11220

ICICI Bank  Futures
Swing : DOWN
SAR : 1115
Low risk entry : 1090
Target : 1051


  1. @abhishek
    Hi,check out the charts of bank nifty and icici bank for the last three days...this when you can use the atr or fibonacci levels as stops,typically when we dont have a clear reference pivot or price consolidation area in the price charts..We need a retracement so that we can use that as a stop in future,when prices test the lows again.
    Using a trend line in such type of chart pattern can lead to a choppy trade as one is likely to draw a steep trending trendline.Not giving time for the prices to correct "time wise".And hence coming out of trade much before the trend get over.

  2. Anuj SIR,


    Thanks for guidance ,
    Sir, which fibo rtrace.lvl/rato should we take for SAR? and second can we use 23% fibo retrc, for LRE? PLZ help.


  3. Abhishek Sir,

    One can take 50 % for low risk entry and 78.6% as SAR.This is not any kind of a rule that's what I feel will work fine.

    Important question with fibonacci ratios is not which ratios are important but which reference point should we consider while calculating the ratio.Now this is a subjective issue(that's the reason why I dont follow these ratios in my trading ) Reference point will depend on one's time frame.You can come up with infinite levels as you can take any number as "significant price pivot" for ratio calculation.

  4. Anuj SIR,

    Good morning,

    Sir, excellent study u have done and shared with us .

    Thanks ones again

  5. Good morning ,


  6. Anuj SIR,

    Requesting you dont call me SIR,

    As i am your STUDENT .

  7. Good morning all

    Easiest way to irritate "r m" and me is attaching "Sir" with our names! :)

    I am not a teacher, just sharing my experience.I have started trading in the markets since mid 2007.There are still a lot of areas which I need to work on,I feel this learning will be an endless process.So I will be a student always and markets will remain as a teacher for me.

    I am sharing how I perceive thing "currently",and it's quite likely that I may change my perception over time.
    For example,if you would have asked me about long term investing one year back.I would have told that it is useless.But now I find it has it's merit and it should be done in a systematic way with a strategy.

    Requesting you not to address me as Sir,what's wrong in the name? :))

  8. Anuj,

    Booked 1 LOT of MINIFTY on 6016.00 ***@100 POINTS.

    holding 1 MINIFTY only.

    Thank you.

  9. @amruta
    Great going...keep you the good work
    I will shift the Low risk entry to 6090 now, for re-entry.
    Is the level too far ?

  10. anuj

    please let me know the link for your favorite william o neil book...and also where can i get hard copy at discounted price in Delhi or Mumbai.

    Time for cherry picking good scrips to invest.


  11. Hi Sri
    I remember you said(a long time back) that you are waiting for a new edition of How To Make Money In Stocks.Check out the link below.

    This orange cover one is the latest edition.Most website sell old versions.I did order the book from this site.But it was never delivered.As it was cash on delivery I never bothered to call them,and they did the same with me!So Call then to see if it is available.

    You can download the pdf as well by doing the pdf search for this book.I think its in excess of 90 MB! other versions were smaller in size.

    Check out the review at Amazon

    Older versions have more feedback,and it's very interesting to read customer's review.Reading criticism will make you postpone the idea of buying!

    Right time to cherry pick for investment?
    I personally dont think so....Check out the valuations of TCS.It's very difficult to find an undervalued company.Going by William O'Neil's way,chance are high that we will be stopped out sooner or later.
    TCS should be an O'niel's stock

    Good luck mate :)

  12. @abhishek
    Are you sitting tight?.I am not booked out.

  13. @ ANUJ

    Yes, sitting tight.

    i too holding SHORT position.


  14. Anuj
    I had old version ebook but lost due to hard disk crash. I thought of buying hard copy.

    Regarding cherry picking, i had in mind market fall (u can see my blog) and expect the midcaps to correct for buy signal.

    on 1 to 2 year time frame, some of the best can be picked now as the economy will enter boom phase after this recovery....

    This phase is little difficult as things will affect the calculations but one with patience can earn good.

  15. Hi Sri
    I do visit your blog quite often specially from OJN2
    Earlier you wrote about fundamentals now more technical posts.Cool

    I have also started to apply fundamentals.The reason I am not very optimistic about investing at this stage is valuation and interest rate cycle turning up with the rise in commodity prices.Big question is when will US start to increase the interest rate?.So till the time we have money flowing from US we can move up.Lets see,I am constantly looking for stocks and adding at a regular intervals regardless of what US does or where commodity prices go. Atleast that's the plan for now and working on it thesedays,apart from usual bread and butter index trades.

    Forget cherry picking....don't you think it's better to pick onions? :))
    Keep up the good work
    Cheers mate :)

  16. oh anuj,

    am still fundamentalist but learning technical.
    only thing is my technical reading has base in fundamental analysis.
    I do agree with your analysis but economy when going through recovery phase cannot afford high inflation and consequential interest rates...sooner government has to act to bring it down....that is what people are factoring in now....if gov fails to check, it may lead to hyper inflation which is uncontrollable once catches...
    you are is right time to pick onions...