Nifty for 01 Jun 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 Nifty has again proved the psychological supply line true. It really does not matter as of now. The market still seems to be in bullish mode. We also see a rising support line. The short term support may be tested. If it breaks the rising support, we have to do a rethink, depending on the technical position as of then.

Till then it is suggested to continue to maintain a bullish frame of mind.

The Index is continuing a well defined consolidation pattern.

Plan your trades and trade happy.

Nifty for 31 May 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.

I hate to say, I told you so. But the market has proved this humble analyst correct. And also proved how media hype can affect the sentiment on certain days.

Going ahead, the Index is showing a consolidation pattern. The psychological supply line still is bothering the market. But if this breaks, then we will have a no holds barred bull market. This is not a trading suggestion but a suggestion to plan your trades and trade happy.

Nifty for 30 May 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.

As was suggested yesterday, “the chart also shows a long term psychological supply line which is extending short term resistance. Short term traders could do well by raising their stop to 4240, which is slightly below the previous historic peak.” The supply line seems to have had its effect today. There is nothing in today’s chart which suggests panic.

In fact, it was the media which was hyping the Shanghai effect. Whereas, if we just step back in time, we will see how the Shanghai Index has outperformed the Indian bourses. Here are some comparative charts, courtesy Yahoo!.

As usual, please right click on the charts, and open in a new window.

Here is a three month comparison, where the Shanghai Index is up in the high 55% region, whereas the Nifty has moved less than 20%.

Now take a look at the six months comparison. As they say, one picture is worth a thousand words.








But wait a moment, take a look at the next chart, over one year.

A whopping 150+%. And the media hypes a six percent fall.

Had it not been for the Capital Goods and the Consumer Durables sectors, the effect on the Indices would have been worse. Longer term traders could still maintain 4140 as their stop. The derivatives expiry will contribute to volatility, so partial hedging also may be advisable. Short term traders may decide their own level of comfort for absorbing a loss, but as oft repeated, a stop is a must.
Plan your trades and trade happy.

Nifty for 29 May 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 chart shows a steady bullish action, where there has been steady buying, keeping the prices moving higher. This establishes a wide 50 point support range for the short term.

If this support is tested and holds, then we could see continued buying support and historic highs being made on a regular basis.

The chart also shows a long term psychological supply line which is extending short term resistance. Short term traders could do well by raising their stop to 4240, which is slightly below the previous historic peak.

Longer term traders could still maintain 4140 as their stop. The derivatives expiry will contribute to volatility, so partial hedging also may be advisable.

Plan your trades and trade happy.