September 4th 2012 nifty targets

Up side target 5330  and Down side target is 5241.trend is in down side if nifty bricking 5270 bellow target is 5241


sep-3rd 2012 Down target achieved. ( i.e 5274)

Rules of Open Interest

• If prices are rising and the open interest is increasing at a rate faster than its average, it is a bullish sign.
  This indicates that more participants are entering the market, involving additional buying, and any purchase is generally aggressive in nature.
• If the open-interest numbers flatten, following a rising trend in both, price and open interest, take this as a warning sign of an impending top.
• High open interest at market tops is a bearish signal if the price drop is sudden, since this will force many 'weak' longs to liquidate.
  Occasionally, such conditions set off a self-feeding downward spiral.
• An unusually high or record open interest in a bull market is a danger signal.
  When a rising trend of open interest begins to reverse, expect a bear trend to get underway.
• A breakout from a trading range will be much stronger if open interest rises during the consolidation.
  This is because many traders will be caught on the wrong side of the market when the breakout finally takes place.
  When the price moves out of the trading range, these traders are forced to abandon their positions.
  It is possible to take this rule one step further and say that greater the rise in the open interest during the consolidation, greater is the potential for a subsequent move.
• Rising prices and a decline in the open interest at a rate greater than the seasonal norm is bearish.
  This market condition develops because short covering and not fundamental demand is fueling the rising price trend.
  In these circumstances, money is flowing out of the market.
  Consequently, when the short covering has run its course, prices will decline.
• If prices are declining and the open interest rises more than the seasonal average, this indicates that new short positions are being opened.
  As long as this process continues, it is a bearish factor.
  However, once the shorts begin to cover, it turns bullish.
• A decline in both, price and open interest indicates liquidation by discouraged traders with long positions.
  As long as this trend continues, it is a bearish sign. Once open interest stabilizes at a low level, liquidation is over and prices are then in a position to rally again.

If prices are rising and the volume and open interest are both up, the market is decidedly strong. If prices are rising and the volume as well as open interest are both down, the market is weakening. Now, if prices are declining and the volume and open interest are up, the market is weak. However, when prices are declining and the volume and open interest are down, the market is gaining strength. 

 

nifty 3rd -sep 2012 forcasting

Targets for September 3: Up 5337 and Down 5274. In case of one sided movement, or consolidation, one or both targets will be irrelevant.


medium term is berries  if 5260 below target is 5170-60