Nifty as on 14 Sep 06

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 Nifty seems to be making the right bullish noises. Even though, on the hourly charts, the immediate short term trend is down, the intermediate trend is still up. Today, it kept hammering away at the down sloping short term trend-line, trying to break out upwards. The selling pressure, however, managed to restrict it from moving up. The volumes on the Nifty Futures were pretty low because of the lack of volatility and the ranged movement for the whole day today.
From a short term technical point of view, this sort of sideways movement normally allows most conventional indicators to move down, which allows the market to get oversold. This allows the market to rebound, and continue its longer term direction once the consolidation is over.
As of now, it looks like India is going to have a very bright Diwali.