Nifty for 05 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.

Intraday volatility continues. On a daily basis, we do see a mild crack downwards. Will it continue? The probability is higher that we may go into a downside correction.

Today, both on the BSE and the NSE we have had uncertain candles three days in a row. The candle pattern is quite like a bearish tri-star, which suggests that we may have encountered a short term top today.

As of now, it does seem that the opportunity for bulls is coming. With some patience, we could start accumulating from a few days hence. The next cycle in time falls on 24 September. This falls on the derivatives expiry week. From the time gap, it is quite possible that we may see a short term bottom sometime in early or the middle of next week, and a resumption of the uptrend.

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.