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.
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.
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.
Aah … the pleasure of being on a vacation.
I have been following the Nifty for the last month, but have not really hammered out the various levels. The fact is that the Nifty has been consistently making higher tops and bottoms since the last week of July. Therefore, it is easy to make a blanket statement that the mood is bullish. Since late July, for the first time, it has made two lower tops. And a lower bottom since its previous swing low. This action would put a lot of doubts in traders’ minds, whether or not, the mood is going to remain bullish or not.
If we see a higher bottom respecting an earlier significant bottom, we should conclude that the mood is indeed continuing bullish, and the Nifty is attempting another foray at clearing the 3480 hurdle.This conclusion also comes from the fact that most Nifty components are not displaying much weakness, and in fact, the banks seem to be gaining in strength.
