Nifty for 31 Aug 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 weekend trading has shaken out some more bears. As can be seen, the Nifty has encountered a historical supply line. There could be mild penetration of that line and then we could witness a correction. Our cycle in time date of 30 August could still have its effect on the market.

As regular readers must know by this time, I dislike giving direction based calls. That places the trader in a mood of complacency. Instead it is always better to plan the trade and then execute it. At this point, the short term up move seems a little stretched. That should allow some profit booking to come in. 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.