Nifty for 12 Jul 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.

What more can a person say that the Nifty is behaving perfectly, technically. A gap up open should hearten bulls, who are waiting for the ~4465 potential target for the Nifty.

The results season is now starting and as can be expected there would be intraday volatility.

The total traded volumes are also rising. In fact, we may see the potential target achieved within a few trading sessions. It is noticed that the market tends to pause at these types of potential targets. Further, the cycle in time falling on 17 July, which has been mentioned earlier too, also is fast approaching. It is now the time to be cautious.

Technically the position now changes … the suggestion to buy on dips would remain valid only for very short term traders. Others may tighten stops and allow the market to exit us from the winning positions.

Plan your trades and trade happy.