Nifty for 11 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.

The short term trend is down. For tomorrow, if the high of 4539 is not violated, then we can expect the trend to continue down. As of now, the Nifty seems to be consolidating rather than correcting. It could gather more downside momentum within a few days.

With some simple maths, we project a downside target of around 4300. These dips may be used to buy in. Of course, without saying, we must keep our stops to avoid disastrous loss of capital.

A sharp eye may also be kept on the coloured zones which are historical support levels. As of now, the market is just making nervous traders even more jittery. With gap up and down opens, it does not allow a normal trader to settle down comfortably.

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

Plan your trades and trade happy.