TURNING POINTS FOR 03.11.2009

Charts: SBI - SAIL - RELIANCE

Charts: MARUTI - ICICI BANK - NIFTY FUTURE EOD

NIFTY FUTURE 30 MIN

PLEASE REFER TO TURNING POINTS GRID FOR 03.11.2009 IN THE POST BELOW.

With my last post, i have completed 6 months of writing the post without missing a single trading day. I hope to continue this with same passion in the coming days and trust the readers have found the posts interesting and helpful in their trading/investment decisions.

As we all know, Stock Market is a game of probabilities. With the new addition of TURNING POINTS GRID, i am confident that if a reader follows it meticulously, it will help him to significantly improve the probability of winning trades.

Please do not try to correlate the daily post with the Grid, as the post will be based on my view about the market - with its own limitations, where as the Grid is being prepared with pre defined logic. If a person has attended my workshop, he would know the basis of its preparation.

NIFTY FUTURE:

Last Friday's session opened with a downside Gap but filled up the same, but closed at the lower end of the day, suggesting the open for tomorrow should be weak. While we may not like falling markets, but the reality is that when markets correct, the weaker hands go away and new investors get an opportunity to buy. If we see this correction from the starting point as low of 3905, we have corrected just 38.2% which is very normal. i would maintain the same view even if it corrects up to 4500 which will be about 50% from the low of 3905.

Considering the close of Friday and the two trading days of US markets, it is likely that we should open weak tomorrow, but 4680 levels can act as a good support level as it is 38.2% correction as referred above. It will be better to consider buy trades with stop loss of 4650. On higher side it will find resistance @ 4725 - 4800 and 4840. While i am suggesting a buy trade, i would like to caution that 4500 levels is a likely possibility during this weak. For investments, it would be better to buy in small quantity at the support level.

Put Call Ratio of Index Options ended the month @ 0.94 as against 1.06 on the previous day. If you observe this closely with the readings though out the month (visit www.nseindia.com) the PCR is virtually at its lowest levels of the month and thus suggesting limited downside.

Please do not forget to use STOP LOSS.

With Best Wishes,

Ketan Asher.

Words of Wisdom

The tree that has the most fruit,

is the tree that bends to the ground.