These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
It was mentioned yesterday that the sideways consolidation was an indication that the Bulls were about to move in slowly. The hourly chart shows a loose inverted head and shoulder pattern. The head was where the over leveraged bulls exit in panic.
The Nifty playing around in a tight zone between 3430 and 3480 does suggest that the Bulls now do not want to allow the “would be” bulls to enter at lower levels. At times like this, it is advisable have a hedged strategy with a long viewpoint, and sell a hedge at higher levels, just in case our analysis turns against us.
Looking at a few Nifty components, it does seem that the software stocks will now lead the Nifty to higher levels.
Enjoy the ride.
5 comments:
Wah sirji wah ! its consolidating like u said !
Thank you pandyaketan.
We analysts are so used to seeing egg on our faces, that it is heartening to sometimes see the market obliging us.
Dusant
Hi
Can u give some analysis for gold also and how it is likely to move in the short term.
Dear Dusant,
I go through u r page on daily basis and it is worth reading u r comments re. nifty movements. u r study of tecnical charts is very good. i look forward if u can start giving a clear picture of nifty.i.e in giving fig.for daily expected movements.
Hello Rajwade and Anonymous,
I am sorry I do not have the time to post such free analysis on a regular basis.
The daily "expected" movement for any financial instrument can be calculated by using the Pivots. Look up the web for pivot points and how to trade them.
Dusant
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