Nifty Daily Wrap Up August 10 2017

Benchmark indices extended the losses for the fourth consecutive trading session as the losses were being led by pharma, auto and banking stocks. Nifty finally ended at 9820.25 levels down by -87.80 points or -0.89%. Advance and Decline Ratio in the Nifty stood at 19:32. India VIX ended at 13.80 levels up by 0.35 points or 2.60%.

On the sectoral front, Nifty Auto, Financial Services, Media, Metal, Pharma, PSU Bank and Realty under performed the broader indices while on the flip side Nifty Bank, IT,FMCG and PVT Bank outperformed the broader indices. On the stock front TECHM, AUROPHARMA, INFY, LT and WIPRO were the major gainers of the day while on the flip side TATAMOTORS, TATAMTRDVR, DRREDDY, BANKBARODA and GAIL were the major losers of the day.

On the global markets front, European markets closed on a negative note while FTSE 100 is trading on a negative note at -1.11%, CAC 40 is trading on a negative note at -0.29% and DAX is trading on a negative note at -0.73%. While on the Asian markets front, Nikkei 225 closed flat at -0.05%, Hang Seng closed negative at -1.14% and KOSPI closed negative at -0.38%.

Technically, the immediate support is placed around 9800 levels and the next support is placed around 9750 levels and on the higher side the immediate resistance is placed around 9900 levels and the next resistance is placed around 9950 levels.


Murrey Math Webinars

Back in 2009 / 2010, Murrey decided to do a couple of webinars. For some strange reason, he decided to post them publicly. You can find some of them over at murrey math webinars.

Sign up for a free account with so that you can download these webinars. Try to go through them over the weekend. Nothing revolutionary takes place in these webinars. In one of the webinars, you will notice that Murrey tries to do live trading – and as expected, the price keeps on exploding higher – causing frame shifts. Murrey casually asks the viewers to keep on shorting. And that small losses are essential for larger profits later.

This is one of the classical shortcomings of Murrey math. Rather than following the predominant trend, this method will tempt us to keep on shorting / buying when the prices surge / fall. In other terms, Murrey’s technics will work well when the market ranges. Once it breaks out / down, it pays to go with the trend.

Anyway, I will let the viewers be the judge.

Are The Stock Markets Random?

All over the world wide web, you are going to come across loads of explanations as to why the stock markets are random. The motive of many of these assertions is to imply that technical analysis is bound to fail over a lengthy period of time.

At the crux of such explanations lies the efficient market theory / random walk hypothesis. You cannot beat the market consistently – this is a highly simplified explanation of the random walk hypothesis.

Recently, I came across an excel sheet that can generate a chart – just like the charts made by financial instruments every day all over the world; the peculiarity of this excel sheet is that it generates charts based on coin tosses. Press the appropriate tab in the excel sheet and the same sheet will produce open, high, low and close values – all based on coin toss probabilities.

Use coin toss open high low close.

I think some of the visitors will find this excel sheet highly informative / entertaining.

Seen On The Web: Almost 80% of Private Day Traders Lose Money

I came across this interesting post in Reddit. Reddit user CuriousGnu did some analysis using the data taken from eToro social trading network to reach the conclusion the interesting conclusion that almost 80% of the private day traders lose their hard-earned monies.

Check out the original post at Almost 80% of Private Day Traders Lose Money

Murrey Math Trading Articles

Murrey decided to publish a series of articles in the Traders World technical analysis magazine a couple of years back. I have collected most of them and have posted it.

While going through these articles, you will notice that Murrey spends a great deal of time trying to ridicule every trader out there who does not follow his system.

His ramblings might be interesting to the traders who are interested to learn more about murrey math.

Download from!7sow2JhT!XkRKDYeknNEvlCOWmBW2AA

Use Sumatra PDF to view the files with DJVU extension.

From The Forums: Watch me lose $29K from now – How long will it take?!

While waiting for my trading setups to materialize, I often find myself wandering to the different forums that cater to all those who are interested in making some money off the stock markets. The underlying idea is to find new information about the ways to become profitable in this business. Various self-proclaimed gurus seem to flock in these places; so I might end up learning a thing or two from them.

Some of the threads in these forums are downright hilarious. See for instance Watch me lose $29K from now – How long will it take?!

Supposedly, the thread starter aarontdang is willing to lose $29,000 by gambling in the forex market. The same person used to trade without any stop losses and thus has lost a lot of money in the forex market. With $29,000, he is willing to try his luck once again; but this time he will strangely rely on stop loss orders.

Watch the hilarity ensue as this trader keeps on losing money every time the forex market decides to make an example out of him. At this point, he just has $8,665 remaining in his Oanda trading account.

Nifty Futures Freak High 8888 (July 21 2016)

Those who trade nifty futures might have noticed that the index futures contract that expires by 28 July 2016 made a freak high of 8888 on July 21 2016. In fact the open price of the contract is this value. On 20 July 2016, the futures contract had a closing price of 8584.15. The very next day, the contract opened 303.85 points up – seemingly without any explanation.

Days such as this is one of the reasons I tend to gravitate towards trading the forex markets. In forex markets, every up-move / down-move has a reason. Such ‘fat finger’ errors do not simply exist in the forex world.

I am sure that once all the stops were taken out by moving the price to 8888, the price of the contract will now gravitate towards 8150. Someone on the inside is about to make a killing in the coming days. Sadly NSE seems to be in bed with these culprits too because I am yet to see any kind of explanations from the exchange for such price movements; which, by the way happens quite often in the Indian markets.

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