Nifty for 03 Apr 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.

Readers may find my statement ludicrous (http://dictionary.reference.com/browse/ludicrous) when I say that the short term trend is still up. When the market suffers a 5+% fall, it does not seem that the trend is still up. But the evidence is still suggesting it. We still have a higher top, higher bottom pattern on the charts. Later the index may turn out a consolidation pattern, which remains to be seen. This is our conclusion as on today. And the short term trend will remain up as long as the Nifty remains above 3619.

It takes a lot of guts to buy when the market is tanking 5% and we do not know what the outlook will be tomorrow. That is where planning the trade comes into focus. Traders could still wait for dips to buy, using our guidelines for a bullish setup. Keeping appropriate stops and hedging will be a prudent idea.

The trend will also be confirmed when we see a violation of 3902 high of 23 February.

Plan and trade happy.