CUES FOR OCT 26

TECHNICAL CUES-------

• MSCI India Index ETN (INP) closed at 60.33 (-1.3%)
• SGX Nifty is trading around 5012.
• Nifty made high and low of 5055 and 4983 on last trading day.
• Last swing bottom is at 4968 and swing top is at 5182.
• Trading above 5020, up move will be seen up to 5050, 5070.
• Below 4983, correction will be seen up to 4968. Below 4968, Nifty will be in down trend with targets of 4934, 4905, 4880, 4850.
• Currently Nifty is in uptrend (medium term) with targets of 4900(achieved), 5100(achieved), 5300. Below 4934, medium term uptrend will be terminated.
• Nifty is in corrective down move with targets of 5061(achieved), 5034(achieved), 5010(achieved), 4980(achieved). Below 4968, Nifty will be in short term down trend with targets of 4934, 4905, 4880, 4850.

DERIVATIVE CUES----

• Nifty October future premium increased to 11 points so cost of carry increased. (Bullish)
• Nifty open interest decreased by 2 lacs suggests long addition. (Total OI now at 2.69 cr)
• Nifty calls added 6 lacs and puts shed 3 lacs in open interest. (Bearish)
• Nifty open interest put-call ratio is at 1.29.
• 4900 puts had open interest of 53 lacs (-13%) and 5100 calls had open interest of 56 lacs (+4%), so 4900 and 5100 will be important levels to watch for.
• India VIX closed at 24.49, decreased by 4% suggests stability. (Bullish)
• In Nifty stocks, advance-decline ratio is at 28/22. (Bullish)

FUND FLOW UPDATE FOR OCTOBER SERIES

--FIIs are buyers only in cash segment in current month which also includes QIP, IPO figures.
--FIIs are net sellars in index and stock futures suggest that they are hedged in there position in market.
--looking to the data, investors need to be cautious in short term.

CUES FOR OCT 22

TECHNICAL CUES-------

• Nifty made high and low of 5117 and 5051 on last trading day.
• SGX Nifty is trading around 5040.
• Last swing top is at 5182.
• Trading above 5090, up move will be seen up to 5110, 5140.
• Below 5051, correction will continue up to 5034, 5010, 4980.
• Currently Nifty is in uptrend (medium term) with targets of 4900(achieved), 5100(achieved), 5300. Below 4934, medium term uptrend will be terminated.
• Nifty is now in corrective down move with targets of 5061(achieved), 5034, 5010, 4980.

DERIVATIVE CUES----

• Nifty October future discount converted in to premium of 7 points so cost of carry increased. (Bullish)
• Nifty open interest increased by 3 lacs suggests long addition. (Total OI now at 2.68 cr)
• Nifty calls added 12 lacs and puts shed 18 lacs in open interest. (Bearish)
• Nifty open interest put-call ratio is at 1.32.
• 5000 puts had open interest of 43 lacs (-8%) and 5100 calls had open interest of 54 lacs (+12%), so 5000 and 5100 will be important levels to watch for.
• India VIX closed at 26.78, increased by 0.4% suggests instability. (Bearish)
• In Nifty stocks, advance-decline ratio is at 13/37. (Bearish)

CUES FOR OCT 21

TECHNICAL CUES-------

• Nifty made high and low of 5182 and 5103 on last trading day.
• SGX Nifty is trading around 5109.
• Last swing bottom is at 5077 and swing top is at 5182.
• Trading above 5130, up move will be seen up to 5160, 5190, 5210.
• Below 5103, correction will be seen up to 5090, 5077. Below 5077 short term uptrend will be terminated.
• Currently Nifty is in uptrend (medium term) with targets of 4900(achieved), 5100(achieved), 5300.
• Nifty is in short term uptrend with targets of 5160(achieved), 5190(achieved), 5210.

DERIVATIVE CUES----

• Nifty October future discount decreased to 10 points so cost of carry increased. (Bullish)
• Nifty open interest decreased by 5 lacs suggests short covering. (Total OI now at 2.65 cr)
• Nifty calls added 26 lacs and puts shed 15 lacs in open interest. (Bearish)
• Nifty open interest put-call ratio is at 1.38.
• 5000 puts had open interest of 46 lacs (-10%) and 5200 calls had open interest of 48 lacs (+13%), so 5000 and 5200 will be important levels to watch for.
• India VIX closed at 26.69, increased by 2% suggests instability. (Bearish)
• In Nifty stocks, advance-decline ratio is at 17/33. (Bearish)

HAPPY DIWALI

Dear viwers,

Wish you Happy Diwali and Prosperous and Profitable New Year.

-Dr.Jignesh Shah.

India is a country that is culturally so rich that it celebrates one or the other festival almost every month. And most of these festivals have their origin in Indian Mythology and there is very interesting stories about them. It is the spiritual and religious richness in India that each festival is related to some or other deity. One of such festivals is the 'festival of lights', Deepawali. Dipavali is the Indian festival that brings a series of festivals with it. One after another it gives a chance to celebrate five festivals together.

Return of Shri Ram Chandra to Ayodhyaa

The most famous legend behind the celebrations of diwali is about the prince of Ayodhya Nagri, Lord Shri Ram Chandra. The story goes like the king of Lanka, Ravan kidnapped Ram Chandra's wife, Sita from the jungle where they were staying as per the instructions of King Dashratha, father of Ram Chandra. Then Ram Chandra attacked Lanka and killed Ravan and released Sita from imprisonment. He returned to Ayodhyaa with his wife Sita and younger brother Lakshamana after fourteen years. Therefore the people of Ayodhyaa decorated their homes as well as the city of Ayodhyaa by lighting tiny diyas all over in order to welcome their beloved prince Shri Ram Chandra and Devi Sita.

Incarnation of Goddess Lakshmi

On the auspicious new moon day, which is 'Amavasyaa' of the Hindi month of Kartik the Goddess of wealth and prosperity, Lakshmi was incarnated. She appeared during the churning of the ocean, which is known as 'Samudra Manthan', by the demons on one side and 'Devataas' on the other side. Therefore the worship of Goddess Lakshmi, the Lakshmi Pujan, on the day of Divali became a tradition.

Lord Krishna Destroyed Demon Narakasur

One famous story behind the celebrations of Diwali is about the demon king Narakasur who was ruler of Pragjyotishpur, a province to the South of Nepal. During a war he defeated Lord Indra and snatched away the magnificent earrings of Mother Goddess Aditi who was not only the ruler of Suraloka but also a relative of Lord Krishna's wife, Satyabhama. Narakasur also imprisoned sixteen thousand daughters of Gods and saints in his harem. With the support of Lord Krishna Satyabhama defeated Narakasur and released all the women from his harem and also restored the magnificent earrings of Mother Goddess Aditi.

The Return of the Pandavas

The great Hindu epic 'Mahabharata' has another interesting story related to the 'Kartik Amavasyaa'. The story reads that 'the Pandavas', the five brothers Yudhishthhira, Bhima, Arjuna, Nakula and Sahdeva, were sentenced thirteen years banishment as a result of their defeat against 'the Kauravas', Duryodhana and his ninety nine brothers, at the game of dice. Therefore they spent thirteen years in the jungles and returned to their kingdom on the day of 'Kartik Amavasyaa'. On their return the people of their kingdom welcomed the Pandavas by celebrating the event by lighting the earthen lamps all over in their city.

RE-START OF E-MAIL SERVICE FOR TRADERS

Dear viewers,

Happy to announce that my E-mail service will resume from 30th October.

Charges will remain as follows--
-Rs.1200 for one month.
-Rs.2100 for two months.

Those who wish to take free trial of E-mail service up to 29th October (DIWALI GIFT)can send there request by e-mail to me on drjcshah123@yahoo.com

Thanks.
-Dr.Jignesh Shah

For details visit the page at
http://niftydoctor.blogspot.com/2009/03/e-mail-news-letter-service.html

CUES FOR OCT 7

TECHNICAL CUES---

• Nifty made high and low of 5035 and 4921 yesterday.
• SGX Nifty is trading around 5060.
• Last swing bottom is at 4921 and swing top is at 5110.
• Trading above 5035, up move will resume up to 5070, 5110. Above 5110 ‘blow out’ phase(terminal phase) in the market will be seen and utilize that phase to offload long positions in market.
• Below 5000, correction will be seen up to 4970, 4940.
• Currently Nifty is in uptrend (medium term) with targets of 4900(achieved), 5100(achieved), 5300.
• Nifty is in short term uptrend with targets of 5090(achieved), 5120(almost achieved), 5150, 5200.

DERIVATIVE CUES---

--Nifty October future premium increased to 11 points so cost of carry increased. (Bullish)
--Nifty open interest decreased by 1 lacs suggests short covering. (Total OI now at 2.48 cr)
--Nifty calls added 6 lacs and puts added 11 lacs in open interest. (Bullish)
--Nifty open interest put-call ratio is at 1.35.
--4900 puts had open interest of 64 lacs (+7%) and 5100 calls had open interest of 36 lacs (-2%), so 4900 and 5100 will be important levels to watch for.
--India VIX closed at 27.75, decreased by 3% suggests stability. (Bullish)
--In Nifty stocks, advance-decline ratio is at 30/20. (Bullish)

CUES FOR OCT 6

• Nifty made high and low of 5076 and 4992 yesterday.
• SGX Nifty is trading around 5032.
• Last swing bottom is at 4904 and swing top is at 5110.
• Trading above 5050, up move will be seen up to 5080, 5110.
• Below 4992, correction will continue up to 4980, 4945.
• Currently Nifty is in uptrend (medium term) with targets of 4900(achieved), 5100(achieved), 5300.
• Nifty is in short term uptrend with targets of 5090(achieved), 5120(almost achieved), 5150, 5200.

--Nifty October future discount converted in to premium of 5 points so cost of carry increased. (Bullish)
--Nifty open interest decreased by 6 lacs suggests short covering. (Total OI now at 2.49 cr)
--Nifty calls added 23 lacs and puts added 17 lacs in open interest. (Bearish)
--Nifty open interest put-call ratio is at 1.35.
--4900 puts had open interest of 60 lacs (+3%) and 5100 calls had open interest of 37 lacs (+32%), so 4900 and 5100 will be important levels to watch for.
--India VIX closed at 28.72, increased by 13% suggests instability. (Bearish)
--In Nifty stocks, advance-decline ratio is at 11/39. (Bearish)