I did mention in yesterday’s post that we would have consolidation at these levels and I like the market to stay above value area low.
After a weak open, the market broke into the value area from below, finished it’s 80% rule target and continued higher.
Today it moved a bit more higher than yesterday, before encountering that seller who showed up again above 5612 levels.
It all looks good from a long perspective. We are forming value at higher levels as can be seen by the volume accumulation at these levels, implying that sellers have accepted the higher numbers.
Let’s look at the Bank Nifty :
Heading into the open we were long this index. The open was not at all pleasant to say the least, but a little bit of micro-management helped convert what would have been a 100 point loss into a sweet 40 point profit. We bailed out near the highs of the day.
There is a seller at 11230 levels and a buyer near 11100-11130 levels.Our previous level of 11039 is also a good insurance against going short on this index.
Interestingly during the course of the day, we spotted an excellent arbitrage concept.Viren calls it the “free money concept”. We are long 1 lot of ACC future at 968 and short in cash at 998 by an equal qty size. This should be a zero risk strategy, one which should give us the dividend by tomorrow’s close.
We are receiving mails for the webinar. We have just expanded the room capacity for our platform, but it has a limit to the number of people who can be accommodated.
We have room still for a few more. The webinar is on Saturday at 11.00 am.
The details are in this post here :