Nifty as on 3 Oct 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 has at last taken a breather. Which was expected. My stop for long has been triggered. Even so, the relevance of the short term support level is reinforced by the number of times that the Nifty has managed to claw back from lower levels. I am expecting this short term move to touch the 3530 levels. Normally, these short term technical levels are overshot mildly. Therefore, a level of 3515 would be a good level to watch out for. I am preparing to go long tomorrow or the day after, if and when I see the Nifty take support there.

Taking a look at individual stocks, we do not find any panic selling, and a mixed behaviour in some sectors. Which leads us to believe that there is going to be some sector churn leading up to the quarterly results.

It is at times like this, that some extra caution needs to be exercised.