Nifty for 14 Dec 06

The chart says it all.

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.

Watch out ... we may see a few hiccups tomorrow.

But it is my anticipation, that these hiccups could turn into non events.

Nifty for 13 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.

It does seem that the Nifty has paused here.

The Bank Nifty, which did the most damage in the last two days, has also staged a resurgence. Further, on the chart, I have also included the 5 minutes chart in close-up. It does show a steady upward direction, with higher tops and bottoms. Therefore, in all probability, we have seen a most significant bottom yesterday.

The volumes on the Nifty Future also suggest the same.

On the chart, we see the several resistance zones which the Nifty needs to overcome, so the going is going to be tough. But, as suggested, the trend should continue upwards.

For investors, it could be suggested to take positions in market leaders, and Index components, as they would lead the sentiment. Look as the second rung stocks later.

For speculators, it could be suggested to hedge long positions as the Index may still give a few heart beat skips.

Trade happy.

Nifty for 12 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.

At last an exciting day. There was enough volatility to shock both the bulls as well as the bears. The direction, nonetheless, was downwards.

A trader could be short on the breach of the earlier support zone of 3800. Now the earlier support zones are all going to turn into resistances.

There are two alternatives which present themselves to us. One is that the Nifty has bottomed today at the 3660 level, and we could see a slow retracement upwards. Please appreciate that any rise will be met with more selling, and the going is expected to take a huge effort from the bulls.

The second is that we could see the Nifty meeting resistance at the 3800 zone and then breach today’s bottom.

In that case, this sharp downside correction could terminate at the 3550 level, from which the bull run could resume.

Please plan your trade according to it.

Nifty for 11 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.

Well, the bottle did break, finally.

Watching from a distance, it does seem that the RBI had something to do with it. The banks seem to have taken a major hit. And that seems to have triggered the negative sentiment.

My stop of 3980 has been triggered, and I would be out.

In most cases, such a sharp fall does have a knee jerk reaction upwards. The bottom fishers would be out, seeking to push the index up. The volumes on the Nifty future are almost close to the May and June bottoms.

Whenever we have seen such high volumes on the Nifty Future, we have always seen a convincing bottom.

How do we trade this? Simple … wait for 3872 to be violated on the upside, wait patiently for a downside move, and then go long, after a higher bottom has been established on the hourly chart.

The thumb rule levels are marked out on the chart.