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.It was suggested yesterday that we may again witness bouts of buying from tomorrow. However, the gap up open was promptly met with selling at higher levels, which resulted in the Nifty moving down, very steadily during the day.
So far the Nifty has not shown any remarkable strength, even though we did see a gap up open. It could be a knee jerk reaction due to global cues, followed by profit booking at the rise. This suggests that the market is still not convinced about its new found strength, and this up move could purely be because the Nifty had lost around 60% of its last up move.
The short term trend could possibly change up. This suggestion would hold valid only if the Nifty moves above the yellow band. The level indicated would be 4430. It should also not violate 4270 on the downside. Therefore, we have a 160 points zone of uncertainty.
Short term traders may possibly buy on dips with a strict stop.
As far as the longer term perspective is concerned … technically the position remains as a suggestion to buy on dips. However, investors could now be cautious about the 4270 level. Profit taking also may be done quickly, unless we are really long term investors.
Plan your trades and trade happy.
1 comment:
Sirji, if we do brk 4200-4270, for how long can we remain in a bear mkt ? what does history suggest ?
reg
ketan
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