Nifty for 03 Sep 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.

As can be seen, the Nifty is still knocking at the historical supply line. There has been mild penetration of that line but still the Nifty is holding. Today’s candles, both on the BSE and the NSE are uncertain candles. We see some resistance levels around the 4520~4535 levels, which incidentally is also a short term price projection.

Therefore, we possibly could see a gap up open tomorrow, and may see the Nifty achieve that target. Earlier I had mentioned another cycle in time falling on 5 September.

Readers would now be itching to enter the bull run, afraid that it will run out of hand and they may not have an opportunity to buy at a later date. The market is imploring traders to buy at this time. And as we all know, we should buy when we want, and not when the market wants us to.

The main trend is still up, and trades could be placed in the direction of the main trend. The proper course could be to wait for dips to buy. Stops may be placed at the 4220~4230 region where you see the grey support band.

Plan your trades and trade happy.