Nifty for 09 Feb 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.

Regular readers would have noticed my analysis of
(Link) 2 Feb 2007 and (Link) 1 Feb 2007 where it was suggested that we may see an intermediate term top today, on 9 February 2007. Unfortunately, from the messages I have got on my messenger, it does seem that memories of traders are really short.

Whether it is indeed a top, remains to be seen. What is important is that we should trade it according to our plan.

From the way the Nifty collapsed today (9 Feb) in the initial hours, it does seem that the intermediate top has set in. From a trading perspective, I would remain alert if the short term top of 4239 is violated on the upside. Till then, we could assume the short term trend to remain down. We may also assume that any rises from here on could be met with selling, which could depress the sentiment further.

Nifty for 07 Feb 07

As has been labelled on the chart … how boring. Just another day, when a new high has been made.

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.

Yesterday’s i.e. 6 February, support has held, thus making the 4170 level as an important short term support level.

The supply line overhead is like a nagging headache which refuses to go away. Traders could be advised here to keep a level head, stay bought and not over-leverage themselves with expectations of runaway profits.

On days like this, I can only repeat my mantra like an old broken record … Keep your profit booking stops according to your comfort levels.

Nifty for 06 Feb 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.

Also check yesterday's, i.e. 5 February chart. Click here.

There is not much change from the technical position from yesterday. We do see a consolidation today, 6 February. As they say, one picture is worth a thousand words, please check the chart where I have labelled several short term, and medium term levels, which could be useful in determining the mood of the moment. The market is looking toppish for the last two weeks or so, and when there is a sharp downside reaction, people will be very tempted to buy. I could suggest readers not to be led into such temptation.

Today’s chart shows that a short term support was tested and held. The supply line overhead is still not letting the market move freely upwards.

Keep your profit booking stops according to your comfort levels.

Nifty for 05 Feb 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.

From the focus point of the December high, we see many crucial observations. Firstly, we see that the 4060 zone saw much resistance earlier, and then offering support later. Also please check the chart on Friday 2 Feb.

It becomes unnecessary to repeat what I have been saying all of last week. Stay bought, till we see signs of weakness.

Today’s chart shows us that a short term support was tested and held. It also shows that we are nearing a supply line around the 4250 levels, which could be a resistance. As a flashback, may I remind readers that we had projected the expected level of 4170 much earlier? This projection was expected to provide resistance in the form of profit booking. However, we have seen that the market has brushed aside that selling level. Now we also see support coming in at that level.

At these trading times, it becomes very important to keep locking in profits. The reason being, we do not know when the rally will end, and will kick ourselves for having sold out too soon. Trading with hindsight is a great sensation, which we do not have, as we cannot read tomorrow’s newspaper today.