Nifty for 10 Jan 07

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.

Speculators could take a risk and go long tomorrow. The only condition is that the Nifty goes above 3890, and does not violate today’s low of 3840.

The market sentiment surprisingly is still positive, but just barely. Today, volumes recorded are pretty high, which suggests that a bottom may be forming.

With the results season on, the volatility will continue. As suggested earlier, allow the Index to confirm the bottom and then only go long.

The Bank Nifty as well as the CNXIT are still showing weakness. But the CNXIT futures show some buying interest. If we see a turnaround in the CNXIT, the sentiment may well turn positive.

Therefore, as suggested earlier, allow the Nifty to confirm the bottom, and then think of long positions.