Off the Track...

I thought of making a trading post but then I realised that this is the expiry week so trading post can wait for some time. We can do that for next (September) series in a couple days and we will still have ample time for trading.

As I said in last post, I have been feeling like making a philosophical post for some time now. Have so many things which create lot of thoughts in my mind like situation which is (still) unfolding in Europe, Anna's failed campaign, Blast in Pune, Coal-Gate, Maruti Violence, Apple vs Samsung, North East issues and ban on social media and so many other issues. It is commendable that an average Indian still goes about his life in usual way and does not loose sanity with so many mediocre things around us.

But before I go about my ranting, NIFTY weekly chart gave as clear a 'Shooting Star' as possible.

This is as clear as it gets. Though not as strong as Gravestone Doji but Shooting Star is also a trustworthy pattern in its own right. Moreover there are too many things pointing southward journey for equities in the short to medium term. If I am forced to, I am trading short. (Ignore the last candle which is for current week and it may change by Friday).

Also I wanted to write about few specific stocks if you remember. And when you talk about NIFTY you cannot escape talking about RELIANCE.

Reliance price has broken from its very long channel and is decisively above it. It has also broken its long term moving averages from below and right now comfortably above all of them. More interestingly it is all set for a Golden Cross in coming few days which may also coincide with price taking support either at 200 MA or upper line of the channel. It can see a bounce back from there. I will wait for confirmation from few more indicators and trade long if I have to without hurrying into it.

If NIFTY has to get to new highs; change in trend for Reliance is (almost) must. It has lot of weight in NIFTY and will have to turn around for NIFTY to have a reasonable chance to go up.

It took me some time between writing that first para and then posting these charts (a day in between actually, started writing this post yesterday and had to leave in between) and writing about them. Lost the steam to rant about issues mentioned. May be some other time. Hope you will like what has become of this post. Do let me know. Happy Trading.