Nifty Index updated on 19 July 06

These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click on the thumbnail on the right, and open in a new window.
The Nifty opened with a bang, and went straight and hit a concrete roadblock. These levels had been providing supports earlier, and now are turning formidable resistances.
It does not require a genius to pass a commentary on this chart, where we see a straight downhill ride all the way. Without a speed breaker on the way. Today, I have also included another blue line which is parallel to the red resistance line overhead. Even that has been violated. As a result, the sentiment is getting from worse to worst.
On the hourly charts, the futures are now showing some positive divergence, on reliable volume based indicators, which could allow this to be a significant bottom, while looking at the extreme short term trend.
There is a zone of support just 20 points below, which could provide temporary support to the Index. However, any retracements are now going to be met with renewed selling. Which is going to depress the sentiment further.
As has been suggested several times earlier, trade with the trend, and in volatile times like this, use hedging techniques to avoid calamitous movements of the market against your trade.