Astro Technical Guide for 01.06.09

Astro Info:: Moon posited in Uttara ruled by Sun
Outlook for 01.06.09:: Market expected to open better and remain so to become subdued from 1.355pm and to become weak from 2.10pm ., Highest rates are likely to be recorded before noon.,
Trading strategy for the day :: If market opens steady and trades above open level by 10.30am , long positions can be taken to be closed by 1.30pm and short positions can be considered around 2.00pm with day high / day’s average traded price as stop loss to beclosed by close of the day.,

Advance out look for 2.6.2009 :: Market expected to open better and becomesubdued / weak from 11.30am to 1.30pm and recover thereafter to become weak towards close of the day.,

Technical Levels :: Nifty futures bullish above 4453 with resistance around4480,4502,4538 and bearish below 4436 with supports around 4410,4387 and 4351for the day...
Trade with stop loss..
Happy trading..
Dr. B Amaranath Sastry

MARKET VIEW FOR 29.5.2009

Above yesterday's high of 4358, market can go upto 4420 and 4450, however looking at the price movement of Reliance & Infosys, this possibility looks very remote. Both thsese heavy weights are looking tired and ready for the next downward move. On squaring of time and price, the market top already seems to be in place. Whether market will have pull back upto 4420 will have to be seen today.

It is also pertinent to note, that today is the last trading day of one of the Maximum Gain Months. There are two factors to be noted here - this month is the 3rd consecutive +ve month and that too with more than 30% gain (i couldn't find any other canlde with such major gain) . Whether this is a sustainable here onwards, is a point to be considered when we think bullishness from here onwards.

Happy Trading,

Ketan Asher.

Astro Technical Guide for 29.5.09

Astro Info:: Moon posited in Aslesha ruled by Mercury which is retro.
Sensitive / Trend change Timings ::
Major :: 10.09; 11.25; 13.45; 15.03
Minor :: 11.45; 12.30; 13.03; 13.31; 14.27; 15.10

Outlook for 29.5.09:: Market expected to steady and recover from 10.38am andrecover further from 11.37am and to have two way movement from 13.45pm.

Trading strategy for the day :: If market is trading above open level, longpositions may be taken around 10.35am and may be closed around 1.45pm or becontinued with trailing stop loss.

Advance out look for 1.6.2009 :: MArket expected to open better and becomesubdued / weak in second half of the day from 1.30pm.. Highest rates for teh daywouldbe recorded before noon..

Technical Levels :: Nifty futures bullish above 4341 with resistance around4367,4388,4423 and bearish below 4323 with supports around 4297,4276 and 4241for the day...
Trade only with stop loss..
Happy trading..
Dr. B Amaranath Sastry

MARKET VIEW FOR 28.5.2009

Yesterday, markets closed on strong note mainly due to short covering on account of FNO stettlement scheduled today.

Today 4340 will be a major hurdle for Nifty Future. All long positions must be protected with stop loss of 4235. The market will continue to show bullish spurts, till it remains above the Trend Line.

As regards Reliance Futures, it will show strength above 2220 and new long postion should be taken only above that level and with a stop loss of 2199.

Infosys will find resistance at 1645 and current long positions should have a stop loss of 1555.

Be ready for Volatile market today,

Ketan Asher.

Astro Technical Guide for 28.5.09

Astro Info :: Moon posited in Pushyami ruled by Saturn .

Market Outlook for 28.5.09 :: Market expected to open steady and remain generally subdued to become weak after 1.30pm. However, inview of the F&O expiry day, scrip specific movement would be there. Technically market is extremely bullish and it is only astrologically, market is expected to display above movements and may close weak. Above guidance may be adapted considering the intraday market movements.



Trading Strategy for the day (28.5.09) :: If market (Nifty futures) is trading below day’s average traded price by about 1.30pm, short positions can be considered with day’s high index or Average treded price plus some points as stop loss and traders can ride the bear move.
Strict stop loss is advised for intraday traders.

Advance Outlook for 29.5.09::Market is expected to open steady and recover smartly from 11.45and and to have two way movement after 1.30pm.


Technical Levels for 28.5.09:: Nifty futures bullish above 4286 with resistance around 4312, 4333, 4367 and bearish below 4269 with supports around 4244, 4222, 4188 for the day…(extended range 4423 on the upside and 4123 on the downside)

(Market closed very high bullish on the penultimate day of F&O expiry and there could significant short covering on the last day .)

Happy trading …

Dr. B Amaranatha Sastry

MARKET VIEW FOR 27.5.2009

Yesterday, Nifty Future became quite weak once it started trading below 4160. It made a low of 4090 and closed at 4114.

Todays trading can be expected to start on a good note in light of positive closing in US markets. Trend Line at 4221 will act as a hurdle on the up side. There after 4255, 4280 and 4330 will as as resistances.

On the down side market will get weak below 4050 and will find support @ 3950.

Reliance will get weak only below 2100 and will find support @2040. Above 2190 it will get strong and go up tp 2250.

In view of F & O Settlement tomorrow, high level of volatility can be expected for the next 2 sessions.

Happy Trading,

Ketan Asher.

Astro Technical Guide for 27.5.09

Astro Info :: Moon posited in Aardra (upto 11.00am) and Punarvasu ruled by Rahu and Jupiter respectively.

Market Outlook for 27.5.09 :: Market expected to open better and become subdued from 11.00am to 11.45pm and recover thereafter to become weak after 1.30pm. Market expected to display volatile movements (up and down) . Steel and Cement stocks are likely to be better .

Trading Strategy for the day (27.5.09) :: If market opens with upside gap, overnight long positions may be sold and be held with open rate (with some filter ) as stop loss and take short positions after 1.00pm , with day high as stop loss and may be closed by end of the day.

Advance Outlook for 28.5.09::Being last day of F&O expiry, scrip specific position likely but market expected to be sharply down in the second half (after1.45pm).


Technical Levels for 27.5.09:: Nifty futures bullish above 4115 with resistance around 4131, 4163, 4196and 4250 and bearish below 4105 with supports around 4090, 4056, 4023 for the day…
Strict stop loss suggested for intraday trading..

Happy trading,
Dr. B Amaranath Sastry

MARKET VIEW FOR 26.05.2009

Yesterday Nifty Future continued to remain in a narrow band, and not able to show any direction. The levels of 4270-4280 will remian resistance area even today. If this level is broken, next importance hurdle would be 4335.

As explained in detail on the attached chart, the Nifty Future continues to remain outside the channel which it broke on that historic Monday, when market had to remain closed due to upper circuit filter. On down side, if 4160 is broken market can come down till 3950.

Reliance will find hurdle at 2250 and on down side ther is a strong support at 2100.

Infosys continues to remain weak till it is below 1555. If 1490 is broken, can go down upto 1460.

Nifty Future and Reliance continue to remain above the Trend Line , so till then bullish sentiment will prevail, which is helping a great deal to B Group stocks.

Happy Trading,

Ketan Asher.

Astro Technical Guide for 26.5.09

Astro Info :: Moon posited in Mrigasira and Aardra ruled by Mars and Rahu respectively

Market Outlook for 26.5.09 :: Market expected to open steady / better and become subdued / weak from 12.00pm and become volatile inclined towards bearishness from 2.00pm., All in all , First half could be better than Second half.

Trading Strategy for the day (26.5.09) :: Long positions may be initiated in the opening with low index in the first half an hour as stop loss and to liquidate the position by about 12.00pm and depending on the trend , short position can be taken with day’s high as stop loss and to close by 1.45pm or be continued with trailing stop loss
Advance Outlook for 22.5.09::Market expected to open steady and remain better from 12.00pm to 2.00pm and become subdued / weak thereafter.
(This is intended for taking overnight positions)


Technical Levels for 26.5.09:: Nifty futures bullish above 4241 with resistance around 4267, 4289, 4322and 4378 and bearish below 4224 with supports around 4199, 4177, 4143 for the day…

Market becomes bullish only if Nifty closes above 4275 and becomes bearish if it closes below 4200.

Happy trading ...

Dr. B Amaranath Sastry

MARKET VIEW FOR 25.5.2009

On friday Nifty Future ended the day as positive, did not show much strength.

For today, 4270-4280 area will act as a resistance. Above that, 4340 will act as a major resistance. Till such time Nifty Future remains above the Trend Line, it will continue to show strength, and thats going to be for quite some time now.

On Friday, Reliance led the Nifty Gains as it had a smart bounce from 2107 - 50% level. It will remain just that, until it is able to go above 2270 & 2320, which is quite a distance from the Friday Close of 2193.75. When 2100 is broken on down side, 2000 will act as a good support.

In this case too, till such time price remains above the Trend Line, at lower levels it will try to show strength.

Inofysy appears to be the weakest amongst the frontline stocks, It will gain strength only above

1545.

Happy Trading,

Ketan Asher.

MARKET VIEW FOR 22.5.2009

Nifty future was unable to go above 4340, and gave up almost 100 points from the high of 4328 for the day.

As the US markets are down the market may open weak, but around 4100 would offer good trading opportunity on Buy side as today being the last day of the week, if market has to close below 4050 it will give a very bearish signal on the weekly chart. As indicated in the attached chart, Nifty Future can not be considered weak till it remains above the Trend Line drawn in Brown. On the upper side, above 4220 market will show strength, with target of 4270 and 4330.

In case of Reliance it can go up to 2000 if it goes below 2100.

In case of Infosys below 1495, it will find good support @ 1470.

Investors who have sold at higher levels may find these levels attractive to buy with trading objective.

Happy Trading.

Ketan Asher.

MARKET VIEW FOR 21.5.2009

Although Nifty Future did close lower due to the weakness in heavy weights like Reliance and Infosys, market has not yet lost the bullish flavour. It will continue to show strength till such time it remains above the brown trend line shown in the Nifty Future chart. Above 4340 will favour bullish trades.

While considering the overall bullishness particularly in B group stocks, it should be noted that Reliance (may find support @ 2100) & Infosys are showing weakness.
So enjoy the really till it lasts, but caution should be the watch word.

Happy Trading,

Ketan Asher.

Astro Technical Guide for 21.5.09

Astro Info :: Moon posited in Revathi constellation ruled by Mercury which is retro

Market Outlook for 21.5.09 :: Market expected to open subdued and recover (sharply?)from 12.00pm and remain volatile with fierce movements eitherside after 2.00pm.

Trading Strategy for the day :: Long positions may be initiated before 12.00pm with day’s low as stop loss as sharp / good rise can be expected from 12.00pm and such long positions may be closed by 2.00pm or be continued with trailing stop loss depending on the position.

Advance Outlook for 22.5.09::Market expected to open steady / subdued and remain generally steady / subdued thereafter to recover sharply after 2.00pm . (This is intended for taking overnight positions)

Market is generally bullish and hence any sharp fall may be utilized to cover any short positions / take long positions in respect of bullish stocks.

Technical Levels :: Nifty futures bullish above 4291 with resistance around 4317, 4339, 4373 and 4428 and bearish below 4274 with supports around 4249, 4227, 4193 and 4137 for the day…

As market was in a narrow range, Nifty fut moved between 4374 and 4260 on 20.5.09, levels indicated for 20.5.09
Happy trading..

Dr. B Amaranath Sastry

Astro Technical guide for 20.5.09

Astro Info :: Moon posited in Uttarabhadra constellation ruled by Saturn and Saturn positied in Leo in Pubba star ruled by Venus in the sub of Jupiter.

Market Outlook :: Market expected to open steady and generally remain steady / subdued to become weak after 2.20pm.. In view of the recent euphoria, huge volatility and intraday swings can be expected…

Trading Strategy for the day :: If market trades below day’s weighted average in the afternoon, short positions can be taken with day high / day’s average traded price plus some points (as filter) and short positions can be closed by end of the day..

Outlook for 21.5.09::Market expected to open subdued and remain better from 12.00pm and remain volatile after 2.00pm..

Market is generally bullish and hence any sharp fall may be utilized to cover any short positions and risky traders can bet on buying 4000 / 4100 puts for getting quick returns..

Technical Levels :: Nifty futures bullish above 4325 with resistance around 4350,4372,4406 and 4462 and bearish below 4308 with supports around 4281,4260,4225 and 4169 for the day…

Happy trading ...

Dr. B Amarnath Sastry

MARKET VIEW FOR 20.5.2009

Nifty Opened smartly on higher end of the day, but could not sustain those levels and immediately gave up all the gains. Once again during the day it did try to go higher but faced selling pressure on higher levels. Incidently, Nifty Future has made Double Top, which is normally considered to be a good selling area. Secondly, @4456 Nifty Future has doubled from the bottom of 2228 formed on 27.10.2008.
For tomorrow, below 4320 , should be considered weaknes, with selling stop loss as 4350. Above this level will favor bullish trades. On break of 4100 - 4050 - 3925, be prepared for 3500-3550 levels. If you have shown courage to sell at higher levels you can replace the stock at those level, in the days to come. The Bullish fever is not yet over, so it is better not to sell Future, instead take risk with buying 3900 PE, which were available for about Rs. 25 today. If they are available intra day tomorrow, it would be worth taking the risk.
So, have courage and conviciton to sell the stock in this rally. This rally will start loosing steam if it does not go above 4650 tomorrow.
Happy Trading.
Ketan Asher.

MARKET VIEW FOR 19.5.2009

To sum up yesterday's market reaction : JAI HO!

The reality remains that no body could book profits, as market did not trade, due to application of Circuit Filter. Nothing stops from it happening even today and we may have another 15% market up but no body can trade.

I have attached a chart of Nifty Future EOD, indicating thereon about 5 gaps that the market has left, form the bottom of 2525.25 made on 6.3.2009. This gaps have to fill over time. So any buying at current levels should be viewed in this context.

I have also attached a weekly chart which gives important levels, relevant in the normal market conditions.

Given an opportunity one should sell in this eupohoria, as once this bear trap is untangled market may see normal levels/functioning.

Till then feel good with higher valuation of your portfolio.

Happy Trading,

Ketan Asher.

Astro Technical View for 19.5.09

Astro Guide for 19.5.09::
On the back of yesterday's gap up opening due to euphoria, mareket is expected to open better and stabilise in the course of time. Market is expected to open better but immediately correct to rise again from 12.15pm to 2.15pm and again become subdued towards close of the day. This is purely based on planetary position and traders may have appropriate stop loss for their position based on technical levels.
Technical Levels ::
Nifty fut . is expected to be bullish above 4379 with resistance around
4405,4426,4461 and 4518 and weak below 4360 with supports around 4335,4313 , 4278 and 4220 for the day..
Happy Trading....
Dr. B Amaranath Sastry

MARKET VIEW FOR 18.5.2009

It is a forgone conclusion that market will have a GAP open on Monday. U must have read enough on the subject over the weekend, and hence i will only add that it is the Best thing to happen for the country to have a stable Govt. However, the benefit of this event has to accrue to the Nation over the next 5 years and not necessarily in the one week or one month from the swearing in of the new Govt. Pl see my post of 15th May to get an idea about market postion after one month of the last 6 Govt coming to power.

Having said this, I will stick to the objective of this blog - that of helping the investor understand the Turning Points.

In all likelyhood the markets will race towards .382 retracement levels (from all time high and Oct 08 low) as follows:

BSE SENSEX - 13850 (Friday close 12173) and

NIFTY FUTURE - 3800 (Friday close 3684)

It would be interesting to see at what levels the markets close on Monday, as that will decide the future course of this rally. If the markets fall at the end of the day it should be treated as a big negative in a sense that it will indicate signs of Exhaustion of the current rally.

Pl remember that Dow rally is slowing down and close below 8190 will only enhance the weakness.

I will only want to caution you of not getting carried away by the media hype and postpone new buying to at least after the euphoria settles down. The .382 retracements may turn out to be a hard nut to crack. Just remember what old timers said "Sell in euphoria and buy on panicks" that way at least you don't get caught on the wrong side of the market.

So if you are long enjoy the ride on Mondya and remember that a bird (profits) in hand is worth two in the bush.

Ketan Asher.

EFFECT OF NEW GOVT. ON SENSEX - A HISTORICAL PERSPECTIVE

All those who are statistically oriented, will find the attached file interesting, as it contains month on month movement of SENSEX after the new Govt. came to power.

I can not find any set pattern. In the data collated from 1991 six PM's have come to power. I find that after one month of the new Govt, on 3 occassions market went up and on 3 occassions market went down.

That's just for the history, lets wait and watch what happens this time around.

Have a happy weekend.

Ketan Asher.

MARKET VIEW FOR 15.5.2009

In sympathy with the foreign markets, Nifty future opened GAP down. During the day it made attempts to go up, but remained range bound.

As can be seen in the attached chart, Nifty Futures has closed below the Trend Line and appears to be poised to go below 3520. Below 3500 it can find support at 3425. Any short position in Nifty Future should have stop loss of 3638.

Similarly, Reliance Future has also closed below the Trend Line and is likely to see lower levels. As referred yesterday, Reliance has to go below 1840 to start becoming weak and can see the level of 1760.

I have attached the chart of DOW EOD, where in you will see similar set up like Nifty & Reliance. Below 8190, it has the potential to go up to 8000-8050. This coupled with the suspense of Election results, could precipitate the down fall.

My guess is - tomorrow could be that day, as the cat will be out of the bag, when markets open on Monday next

Trade safely in Volatile Markets,

ketan Asher.

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Astro Technical Guide for 14.5.09

Astro Techical Guide for 14.5.09
Review :: Markets ended in negative yesterday as expected but amidst high volatility.
Astro Forecast :: Moon transits in Poorvashadha ruled by Venus upto 12.40pm and thereafter in Uttarashadha constellation ruled by Sun. MArket expected to open in the negative and remain positive between 12.40pm to 2.50pm and thereafter become weak once again. Close of the market depends on the extent of fall before 12.40pm and after 2.50pm. However, week ahead is expected to be highly volatile in view of the uncertainty looming large in view of the big event ahead. Important astrp events are Rahu changing the constellation and Sun changing the sign. Sun's entry into Taurus can be termed as bearish as it is aspected by Saturn. Market is expected to have a reasonable correction going forward. Hence, long traders should be cautious.
Sensitive / trend change Timings :: 10.25am; 12.40pm; 2.45pm;

Technical Levels :: Nifty fut is expected to be bullish above 3647 with resistance around 3669,3687 and 3716 and weak below 3632 with suppports around 3611,3593,3563 for the day..

Nifty could not pierce the last week's high yesterday and has been range bound for the last Eight days in the new series and can be expected to move out of the range . I expect market to market to come down in the near future.
Happy trading,
Dr. B Amaranath Sastry
FCA.,ACS.,MA(Astro).,Phd.,(Financial Astrology)

Market View for 14.5.2009

Although Nifty Futures made an attempt, it could go only upto 3723 & could not cross previous high of 3729. It quickly gave up most of the gains and closed near the lower end of the day. I have attached Nifty Futures EOD chart with markings for a Rising Wedge. Effect of this wedge will be felt once 3519 is broken. Please recall that we still have unfilled GAP around that area. Once this level is broken, 3325 should offer good support as it is 1/3 rd retracement of rally that started from 2525 to 3729 and is also an old TOP (3298) made on 5.11.2008. While today these levels may look little far away, please remeber that:

1. This rally has been going on virtually non stop from 2525

2. We have events lined up starting this week end, that have tremendous significance and great level of uncertanity.

I have also attached a chart for RELIANCE FUTURES EOD, that shows similar Rising Wdge formation, although the breakout point on down side is little far away. In this case, if it breaks 1840 the effect of this Wedge will come to play and the price may find support at around 1700 which is 1/3rd retracement level of the recent high/low.

It may be noted, that the angle of ascent in case of Reliance is much higher than Nifty Future and hence the fall can also be that much faster/sharper.

We have two trading sessions before the results are out, so take positions very carefully as market may see high volatility till the final tally is made and the new Govt. takes shape.

Till then ...Happy Trading,

Ketan Asher.

MARKET VIEW FOR 13.05.2009

Nifty Future did not break the low of 3532 made on 11/5/2009, thus leaving the gap at 3519 unfilled for the time being. Yesterdays' rally led by Reliance will now face various resistances starting from 3750 as indicated in chart posted for Market View for 11.5.09. Long positions should now have Stop Loss of 3645.

Reliance Future, with support from higher crude prices crossed the previous top and closed strongly @ 1962. Will now face resistance @ 2025 and there after @ 2100. Long positions in Reliance Future should have a stop loss of 1939.

Happy Trading,

Ketan Asher.

Astro Technical view for 13.5.09

Moon is posited in Poorvashadha and squaring Venus. Sun is also squaring Jupiterwith in orb. (Sun square Jupiter is generally considered bearish). Moon is in Venus star and Venus sub and Venus is in Saturn star and Jupiter sub. Considering the overall planetary position, market is expected to open steady / better and fall from 12.45pm to 2.45pm and may close in the negative...

Coming to technicals, medium term and short term is positive / bullish , any fall may be utilised for buying. However, for day traders, if Nifty fut is trading below 3730, short positions may be taken with 3740 as strict stop loss. If Nifty fut opens above 3730 but comes below 3730 after 12.30pm, short positions may be taken with day high as strict stop loss.
Following are the technical levels for Nifty fut.
Nifty futures bullish above 3694 with resistance around 3716,3734,and 3764 (extended level 3812) and weak below 3680 with supports around 3657,3639 and 3610 (extended level 3561) for the day..

MARKET VIEW FOR 12.5.2009

As expected Nifty Futures had a bullish open, which could not sustain for long and it started trading below the previous week's low of 3585.
Previous high of 3520 should act as a good support. However, if 3500 is broken, market can go down upto 3425 - which appears more likely, before starting a fresh up move.
Any short postion in Nifty Futures should have a stop loss of 3591.

Happy Trading,
Ketan Asher.

MARKET VIEW FOR 11.5.2009

At the end of the last week Nifty Futures made a candlestic pattern named as Doji Star, indicating further weakness below last weeks low of 3585.

I would like to reiterate that the region of 3750 to 3850 has following multiple hurdles, which market may not be easily overcome.
1. Mid point of 5271 and 2228 = 3749.50
2. Previous low of 3761 made during the week ended 19.7.2008.
3. Two trend lines indicated in the attached chart.
Next week will have lot of contradicitons for the market, as we have bullish close in US and other markets - suggesting bullish open on Monday. where as our market will start getting jitters for the outcome of Govt formation, the announcement for which will come only after the week is over.
If weekly chart is any indication - the signals given by the chart do not augur well for the coming weeks. It is therefore advisable to trade with caution and short position already made should have a stop loss of 3660. In the event of market going upto the region of 3750-3850, one can sell future and buy a call of 3800 or 3900. Please do not have any naked short position.
Happy trading,
Ketan Asher.

MARKET VIEW FOR 8.5.2009

As Nifty Future remains above 3621 it continues to show strength - with support from foreign markets. Now that the Stress Test results ar out, the markets all over may find a direction. It may be noted that since the gap open on 4.5.2009, Nifty future has remained in narrow range of about 123 points.
Yesterday's Nifty Future movement has not gone out of the Shooting Star (on 6.5.2009) day's range and hence indication of weakness continues. Once 3600 is broken, market will test support at 3520 (Previous Top), where it will also find Trend Line Support @ 3504.
I still feel that 3750 will offer a strong resistance and market may come down to fill the gap of 29.4.2009 & 4.5.2009.
Happy Trading,
Ketan Asher

MARKET VIEW FOR 7.5.2009

Once again Nifty Future made a new top, but could not sustain the gains and went below yesterday's low and also closed lower than yesterday. As per candlestick charts, today's candle is a shooting star pattern indicating bearishness. I maintain my bearish view and fall will accelerate once market breaks the Trend Line - which may happen sometime next week.

Nifty Future will find first support around 3520 - which was an earlier top. Once the trend line is broken, market can go down upto 3300 and there after 3150 . Needless to say election results/ other international events will have enough potential to make the above levels a reality.

It is better to liquidate long postions on every rally as markets may still show strenghth (above 3620), with support from foreign markets. Short postion in Nifty may be created at higher level tomorrow and buy 3800 Call as a protection.

RELIANCE did hit the 1925-50 range as anticipated. Below 1820 - on break of Trend Line, it has potential to come down to 1700 and 1500 levels in the days to come.

Do remember that like everything else in nature - market too gets support of Newton's law while going down and hence the fall is always faster than the climb.

Happy Trading,

Ketan Asher.

Market view for 6.5.2009

After a big blow off yesterday, market seemed to be taking a breather today. Inspite of choppy movements, Nifty futures did manage to make a new top, thus continuing to show strength.
In yesterday's post, i missed out mentioning one more possible hurdle that market faces, is that of Mid point of 52 week high/low at 3710 for Nifty Spot and 3698 for Nifty future. Today Nifty future made a top of 3693 -just 5 points short of 3698. Even if this level is breached tomorrow, closing above the resistance levels mentioned in yesterday's post (3750) countinue to remain a major challenge for the market.

Tomorrow, Nifty futures trading below 3620 will confirm that it is on its way for a correction.

I would reiterate, that at these levels, it is better to adopt the strategy of reducing long position and wait for a correction before fresh buying.

Happy Trading,

Ketan Asher.

Market View for 5.4.2009

As anticipated market did open with a gap and Nifty Futures ended the day at 3658. It should be noted that although market rose by 185 points the volumes were relatively lower.

Tomorrow market may face resistance @ 3750 region as there is a gap between 3758-3823 and also facing 50% retracement of the recent low and previous top as indicated in the Nifty Futures Chart attached. It would be better to avoid new buying at these levels and wait for correction.

One more reason for market making an intermediate top tomorrow: As per Ganns Seasonal Time Period - 5th May is 1/8th of the year commencing on 21st March.

In support of the above view, I have also attached Charts of Reliance and Infosys Futures which indicate of the impending hurdle that may be faced by these two index heavyweights. Reliance faces hurdle in 1925-50 region as shown in the chart, where as Infosys faces hurdle at 1700-10.

In light of the above it makes sense to book profit on long position or at least keep a tight trailing stop loss, as we have seen in the past that market is seldom sympathetic for not booking profits.

Do remember that non of the problems that brought market down (at international level) have been resolved but on the contrary has seen addition in the form of Swine flue epidemic. Moreover, at home - market is going up inspite of negative guidance from Infosys and not so good results from Reliance - but thats how markets move.

Happy Trading,

Ketan Asher.

MARKET VIEW FOR 4.05.2009

With the surge in overseas markets while we were holidaying for electing a new Govt. It is most likely that our markets will have GAP open on Monday.

3600 and thereafter 3650 seem to be the probable targets for the coming week.

From these levels, the risk reward ratio is turning against new buying at current levels, as the time window for upmove may end around 15.05.2009.

Also note that Monday will be beginning of a new month and hence Opening levels on Monday will be of much importance.

Happy trading,

Ketan Asher.