Nifty for 29 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.

With a holiday on Tuesday, 30 January, it was expected that the market would be a little skittish. And it was. The day’s direction was sideways and tending towards weak. Some kind of mild profit booking also emerged with very low volumes. Even on a mildly weak day, we do see some buying interest, as the advancing volumes outstripped the declining volumes, even though the advance decline ratio was adverse.

The Nifty is looking like a bit toppish. It would be better for extreme short term traders to exercise restraint, rather than go long at tops. We always have the mild reaction to the top. Further, the Bank Nifty is showing weakness, and could move down quite a bit. Which could contribute to weakness in the Nifty too. The CNXIT also could contribute a bit of weakness, if the sentiment reverses.

So … watch out.

Trade happy.