AUTOMATED TRADING

AUTOMATED TRADING

21 May 2012

NIFTY

As I told you in my previous post that untill unless nifty close above 4930 up move cannot be confirmed. It is acted like a lakshman rekha. Today Nifty touched 4938 twice and slide from there. It made low 4888 and recovered from there also and closed at 4906 level.
Today 4900 put added 405400 contracts in open interest and 4900 call added 440300 contracts in open interest which indicate volatile move around 4900 level. But what I saw today that no shorts buildup by smart players. As per nifty EOD charts bullish ingulfing pattern seen yesterday and today it hold the  yesterday level. Nifty is improving upside from its lower bollinger band. As per slow stochastick and RSI it is improving but no strength showing on slow stochasticks indicator. If global market support tomorrow i  highly expect a 65-70 points rally up side. Currently no shorts are advisable here untill unless nifty slide below 4880. But whenever I saw around trend reversal level first Bank Nifty give smart reversal. It has showed very smart recovery from last two days.After nifty crossing and closing above 4930 will give a jump to 5040.

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