Thursday, January 19, 2012

A value trade - worth spending 10 bucks



Comments are there in the chart.
Posted by at 7:17 PM
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2 comments:

  1. Niravji, Welcome back. A post after nearly a month..
    But not seeing any Bad news for Bears to take control. With Sectoral rotation, looks like bulls are in full control. I do hope we get the target you have mentioned on downside.. But will we reach there??. FIIs are continuously buying and Rupee also appreciating which is helping bulls..Keeping finger crossed..
    What is the point of negation. ??

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  2. HI Hari,

    I was on my Christmas leaaves.
    Do not go by the target . go by the trend. Never be sancrosanct about the targets as it creates hope in human mind. Hope never works. I advised a trade which looked to me value trade if my shown counts are right. If the counts shown are right then we can reach there. There are many other alternative counts at work and we are trading possibilities here. Point of negation for this time 3 days.....I have bought puts of 4900 for jan series which is going to expire in 3 days so I will rework after three days for the counts. Point of negation one can consider as last higher high which was around 5100 from where market retraced back. Now above last high market would create a higher high so that could be considered as first point of negation but my counts shows C wave up is on and there is no rule that C wave can't go above a wave top. It may surpass it in the flat correction by few points...Also to keep in mind resistance line joining all tops is hovering around 5200 so that could be also taken as important level to change the view. Above that market will be trading above the channel which market has created since last one year.

    Remember whenever we are trying to play new motive wave down we are dealing with C wave up and if counts proved to be wrong it becomes 3rd wave up rather than C wave.......So it is very important to have clear stop loss and we are not stuck in wrong trade. I have tried to show one good trade which has possibily of loosing only 10 bucks. I will update other trade if any comes to my mind. This trade will tell us whether market wants to start a new wave down or wants to convert this c wave into 3rd wave up...

    Kind Regards,

    Nirav Shah

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