Nifty, Bank Index & Stocks Ideas - 11 June 2010

2 comments:

  1. sir, small & silly doubt. As per todays closing , levels mentioned for low risk entry are around 50-90 points higher. do you expect that tomorrow those levels will come and we can enter in to long trade at that time. If nifty & bank nifty opens much higher tomorrow then what to do. Sorry for the silly doubt.

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  2. @Venky
    Always feel feel to ask...:)
    you said
    "levels mentioned for low risk entry are around 50-90 points higher."

    Nifty futures closed at around 5090...LRE is at 5032...I think you meant lower than "higher"?

    I dont expect LRE level will come tomorrow if dow ends with at current levels
    But what will come is the "target" level and possibly a move beyond that level....so if somebody reversed at the SAR level mentioned yesterday...can book profits around "target" only on signs of weakness...Check this link for more info

    http://financeandtradingmadeeasy.blogspot.com/2010/01/how-to-use-market-calls-table.html

    Apart from above..we can't buy at the gap up...so if I were an intraday trader...I might consider short...if swing trader ...I will wait for a retracement...around 100 point from top or time elapse for averages or trendlines to "catch up" with price....LRE may not come tomorrow...
    As they say, early birds get all the worms...so if we miss the opportunity to enter longs today...we missed the first leg up in this new trend
    But what if we get a gap down?(just an example)
    we straight away get an entry at LRE(or close to it) for swing trades...and as day trader as well we go long(very good set up)
    So going short tomorrow is risky for day trader as that will be against the trend...so you can choose to sit aside
    Again it all depends how we open and whether it a runaway gap or the gap gets filled etc
    Hope things will be clearer now
    Good luck cheers

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