Nifty Index updated on 13 July 06

Disclaimer: These are my personal thoughts and not trading advise. To view the full chart, right click on the thumbnail and open in a new window.

I would like to place on record, my humble thanks to all readers who “congratulated” me on yesterday’s analysis on chat. Also, the lone reader who has placed his comments on record. While being deeply satisfied with the way the market panned out today, I also felt a twinge, “why can’t the markets behave as expected everyday?”

The market moved just eight points above 3200. Exactly as anticipated.

The Index low was 3149, just nine points above the 3140 level, what was suggested yesterday.

If you have missed reading yesterday’s analysis, look for the link on the right column, labelled “Nifty Index updated on 12 July 06”.

If we zoom into the last couple of days, we see that so far, the Index is playing out with higher tops and bottoms. If we project the amplitude of the last couple of days, we see that the Index took support – exactly near the 38% retracement level, labelled point A. It overshot the previous swing high and faced resistance exactly near the 161.8% level, labelled point B. And again, it seems to have taken support today above the previous swing high at point C.

Considering these movements, we could project two upside levels near the 3245 and the 3295 levels. Mind you, these are not the Elliott Wave method of labelling, which I have annotated on the chart.

Therefore, readers could remain on high alert at these levels, and manage their trades accordingly.

And as always, trade happy.