These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click here and open in a new window.
A new high looks like becoming a routine.
However, with every new high, profit booking is rearing its head. As a result, we are not seeing any sustained follow through buying. Let the profit booking happen.
For the longer term player, it could be the best possible thing to happen.
The Bank Nifty seems to now have given up its support, and may witness some more weakness. As mentioned earlier, this sector churn could lead to some volatility in the Index.
If we just step back, and see the chart, we do not notice any major weakness in the index, as of now.
The technicals still suggest that we could expect a short term target of 4120. The fib extension target posted earlier still holds at 4170. I would raise my “mental” stop to 3980, from where the Nifty bounced strongly.
Wednesday, December 06, 2006
Nifty for 05 Dec 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.
How boring. A new high has again been achieved, once again.
It really is strange, how traders have doubts in their minds when they are holding positions. There is no evidence of any weakness and yet people ask me for my opinion on the market.
The Bank Nifty seems to have taken support, and about to bounce back. As a result, some sector churn could follow, leading to some volatility in the Index.
The technicals still suggest that we could expect a short term target of 4120. The fib extension target posted earlier still holds at 4170.
How boring. A new high has again been achieved, once again.
It really is strange, how traders have doubts in their minds when they are holding positions. There is no evidence of any weakness and yet people ask me for my opinion on the market.
The Bank Nifty seems to have taken support, and about to bounce back. As a result, some sector churn could follow, leading to some volatility in the Index.
The technicals still suggest that we could expect a short term target of 4120. The fib extension target posted earlier still holds at 4170.
Monday, December 04, 2006
Nifty for 04 Dec 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 Bull Run still remains intact. A new high has again been achieved.
A convincing support now lies at the support zone marked out on the chart. The Nifty still has maintained its upward trend.
On the other hand, sector indices like the Bank Nifty and the CNX IT show some signs of weakness. Leading us to believe that there could be a minor correction in the Nifty. The correction could be enough to allow bulls to believe that the bull run is over. In that case, the support level of 3970 will be tested.
If I was trading this market, I would maintain a stop of around 3960. If I was to re-enter this market, I would look at 3970, as an entry level, with a strict stop. In any case, the technicals still suggest that we could expect a target of 4120.
The Bull Run still remains intact. A new high has again been achieved.
A convincing support now lies at the support zone marked out on the chart. The Nifty still has maintained its upward trend.
On the other hand, sector indices like the Bank Nifty and the CNX IT show some signs of weakness. Leading us to believe that there could be a minor correction in the Nifty. The correction could be enough to allow bulls to believe that the bull run is over. In that case, the support level of 3970 will be tested.
If I was trading this market, I would maintain a stop of around 3960. If I was to re-enter this market, I would look at 3970, as an entry level, with a strict stop. In any case, the technicals still suggest that we could expect a target of 4120.
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