Nifty for 24 May 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.

The market did pause for a short term at a support zone. It was not strong enough to give enough impetus for buying. Hence, it was quite natural to expect the market to continue further down.

According to calculations, the market could see short term supports at 4170, 4095 and 3980. Allow the market to confirm these short term bottoms, before we change our mind about buying in.

Further, we have not seen enough time elapse for the negative sentiment to build up. And we all know, we should be buying only when the negative sentiment is at its peak. The sudden crash in the last hour or so, must have triggered a lot of stops of bulls.

Plan your trades and trade happy.