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.
The high of the Nifty is just 10 points away from our objective of 3570, mentioned in my analysis of 18 Sep 06.
Also as mentioned yesterday, bulls would need to adopt some more guts and withstand the bear onslaught. As expected, the bears tried to reach the 3500 levels stops, but today the bulls were stronger. The surprise today was the Bank Nifty, which corrected more than expected. Apart from that, everything still seems to be right on course. In all probability, if the 3570 levels are breached, then we could expect the 3610 level to be reached.
One thing which is noticeable is that the volumes on the Nifty futures are rising when the Index is falling, which should give comfort to bulls.
Please remember, the weekend normally tends to skew things slightly out of shape.
4 comments:
Interesting, but stick to the USA!
www.beanie11111.blogspot.com
Rock!
Interesting ... but I stick to India.
Dusant
Hi Dusant,
How does one explain the following comment :
"One thing which is noticeable is that the volumes on the Nifty futures are rising when the Index is falling, which should give comfort to bulls."
regards,
vin
Vin,
The matter is simple, if we notice exceptionally high volumes coming in the troughs, and those volumes are able to keep the Nifty future from making a lower low, we can assume that the mood is bullish.
The inverse would be true when we see exceptionally high volumes coming at peaks, which do not allow the Nifty Future from making new highs.
That is the most basic principle of the stock market.
Dusant
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