Nifty for 10 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.

Today’s down move may be attributed to the hype associated with the 9/11 landmark in history. As was expected, the trend was weak for the end of day analysis. However, due to the gap down, we saw a fantastic recovery for the day. The Nifty has reached a historic supply line again. It could be expected to receive resistance around those levels.

Going ahead, we could expect some more weak bulls to be shaken out in a correction lasting just a few days. Today, the longer term perspective may be viewed. The next objective lies between 4680~4690. In that case, the Index may well make a new historic high later. How much time it takes is anybody’s guess. However, I could hazard a guess for it to be around the expiration of this derivatives cycle.

It may be suggested to just start accumulating around the 4350~4400 level. We need to choose the sectors carefully as we see the IT sector being weaker, but the Banking sector stronger than normal.

The main trend is still up, and trades could be placed in the direction of the main trend.

Plan your trades and trade happy.