A posting after the fact - Nifty for 14 and 15 March 07

Dear readers,

I have been extremly tied up for the last few days and hence, could not post here.

Here are my musings, as if I would have written exactly as I saw the charts on 14 and 15 March 2007.

Nifty for 14 March 2007
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.

As per our earlier estimate, we had expected the short term trend to remain weak (not meaning down) till 15 March. And tomorrow, it is quite possible that we may see a short term bottom. The blue circle could allow us to witness a short term support.

A significant level has been tested today, which has earlier long term resistances and supports. Further, we see historical gaps at these very levels. As of now, the short term trend is still up, the intermediate trend is still trying to turn up, and the long term trend is still up.

Yesterday, I had made an error in this statement … “The 3684 level is still exerting its influence on the tops and the 3685 level on the down side.” The sentence should read as … “The 3784 level is still exerting its influence on the tops … ” … As of now, the situation still seems a buy
on dips, so readers could draw up their trading plans accordingly.

Some people have asked me how can we trade a market where we have a 100 point gap down or up, and how stops can be implemented.

The answer is simple, at times of upheaval, it is always prudent to be hedged, rather than having naked positions. The profits may be limited in hedged positions, but the capital losses are severely restricted in times of disaster.

This brings us back to our motto; Trade happy. It allows for lesser mistakes.

Nifty for 14 March 2007
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.

There seems no change from yesterday. The green line still seems like acting as a magnet.

15 March has come. We now need to observe whether or not see a short term bottom. The blue circle could allow us to witness a short term support. Allow the market to confirm it, before taking any hasty steps.

The previous long term peak is also a significant level, so we may see a hitch at that level.

Trade happy. It allows for lesser mistakes.