S&P CNX NIFTY as of 24/10/2008

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trend line, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.

During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

On 10/24/2008, * S&P CNX NIFTY closed below the lower band by 23.7%. This combined with the steep downtrend suggests that the downward trend in prices has a good chance of continuing. However, a short-term pull-back inside the bands is likely.

Making the picture somewhat unclear is the fact that Bollinger Bands are 103.75% wider than normal. The large width of the bands suggest high volatility as compared to * S&P CNX NIFTY’s normal range. Therefore, the probability of volatility decreasing and prices entering (or remaining in) a trading range has increased for the near-term. The bands have been in this wide range for 2 period(s). The probability of prices consolidating into a less volatile trading range increases the longer the bands remain in this wide range.

The recent price action around the bands compared to the action of the Relative Strength Index (RSI) does not suggest any trading opportunities at this time. The current value for the 14 period RSI is 18.3375. The RSI has just reached its lowest value in the last 14 period(s). This is bearish.

Summary

The current market condition for * S&P CNX NIFTY is: Very Bearish

The close is currently Below it’s 200 period moving average.

The close is currently Below it’s 90 period moving average.

The close is currently Below it’s 30 period moving average.

FUTURE & OPTIONS EXPIRY WEEK AHEAD, TECHNICALLY I AM EXPECTING STRONG PULL BACK (Counter Rally) UPTO THE LEVELS: -2810-2930-3120

Warren Buffet on the financial crisis and his outlook for equities

_ A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful.

And most certainly, fear is now Widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak

competitive positions. But fears regarding the long-term prosperity of the

These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now.

_ I’ll follow the lead of a restaurant that opened in an empty bank building

and then advertised: “Put your mouth where your money was.” Today my

money and my mouth both say equities. nation’s many sound companies make no sense.