NIFTY AND BANK NIFTY MARCH AS PREDICTED
DISCLAIMER: These notes/comments have been prepared solely to educate those who are interested in the useful application of Technical Analysis. While due care has been taken in preparing these notes/comments, no responsibility can be or is assumed for any consequences resulting out of acting on them.Trading in Stocks/Commodities/Futures Carry Risk.
NIFTY FUTURES 6145.75 + 214.30 (5931.45)
I had predicted that NIFTY Futures is forming a flag ( See the Post on September 15) and any breakout therefrom will lead to an upmove.Nifty did exactly that today.And the upward breakout was with volumes opening target of 6500.
BANKNIFTY FUTURES 11214.1 + 714.50 (10499.60)
BANK Nifty Futures has also broken out of the Flag formation and a target of 11900 aprox is open.I had predicted the target of 10900 on September 10 and September 12 ( see posts) .
Predition is free therefore everyone can do it , if the fed had come up with something else and the nifty had gone down 3% there would not have been a i told u so in bold red letters
... anyways my point is when there is big news expected having trading postions before the news is stupidity and even bigger stupidity is trying to do technical analysis before a big unknown news event and try and predict direction
NEWS ONLY TRIGGERS THE MARKET IN THE DIRECTION OF PREVIOUSLY FORMED PATTERN
The basics of Technical is Demand and Supply and the Formation of Flag meant that SMART MONEY had acumulated stocks or are bullish.Through Technical one tries to read their i.e SMART MONEY'S intention.NEWS/EVENTS ONLY TRIGGERS the direction of the market in already formed pattern i.e if bearish - Capitulation and vice versa.
REgarding if this had happened or that had happened , anything can happen.
I would like to draw ur attention to 2004 and 2009 elections when the media was saying something and what happened.
2004 During 2004 the media and ruling NDA was gungho about shining India .But the SMART OPERATORs, was not expecting BJP above 280+.But market had started falling much before the election approx 2 weeks before making lower high lowr bottom.And after the result it only had a free fall.But lower high lower bottom had only started earlier.
2009. HEre also people were expecting noone would gain clear majority.So media was talking of hung Parliament and mkts would fall etc. But the market closed at it's highest point on Friday i,e day before results when opinion polls showed Hung Parliament and the results were expected on Sunday or Monday.The market had rallied from 2500 low to high of 3600.After the result the pattern was convincing and market rallied again.Why would anyone take risk just befor election results.Risk in INHERENT in MARKETS
HEre also in this case FIIS had bought before FED decision.
To a LAYMAN it appears that the NEws created the market.
If your query was sincere, I am happy to provide this explanation.If it was just for arguement, I am not going to reply to ur query anymore.
I AM NOT ASKING ANYONE TO FOLLOW TECHNICAL ANALYSIS HERE.