Nifty for 08 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 chart says it all. The Nifty is still hovering around the support zone. We also see it testing the lower rising trendline, which has been tested several times historically. The short term trend is still down. The intermediate term trend is now showing signs of being vulnerable. Please remember, this is on the hourly chart. The long term trend is still up.

As suggested again and again, wait for a confirmation of the end of the short term downtrend, and then readers could buy. The levels for Monday could be, when the Nifty violates 4196 on the upside, and then does not violate 4128 on the downside.

Plan your trades and trade happy.

Nifty for 07 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 short term trend is still down. The intermediate term trend is still up. Please remember, this is on the hourly chart. If we look at the daily chart, we have to follow the same principle. The long term trend is still up.

Today, the Nifty has re-tested and confirmed a support zone. As was suggested yesterday, we did see a gap down opening, in the first hours of trading. We also did see some buying support coming in, by the way of short covering.

As suggested yesterday, wait for a confirmation of the end of the short term downtrend, and then readers could buy. This would be tomorrow, when the Nifty violates 4230 on the upside, and then does not violate 4161 on the downside.

Plan your trades and trade happy.

Nifty for 06 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 Index has surprised me by its sharp downward move. The tight movement of the last few trading sessions was suggesting a sharp move. However, the direction was unanticipated. But then, that is what stops are for.

Please take a look at the hourly chart. The red circles are the intermediate bottoms. The blue circles are the short term bottoms.

After today’s action, the short term trend is down. The intermediate term trend is still up. Please remember, this is on the hourly chart. If we look at the daily chart, we have to follow the same principle.

And in any case, the long term trend is still up.

Today, the Nifty has rested on a support zone. With the hugely negative sentiment, we may see some follow up selling tomorrow too, in the first hours of trading. We may then see some buying support coming in, by the way of short covering.

Please do not assume anything and do not try bottom fishing. Allow the index to confirm the support at whatever level it chooses, and then buy.

Therefore, please revisit the link on my blog for the bullish set up. As of now, shorting could be hazardous. Here is the link for convenience. http://dusant.blogspot.com/2007/01/nifty-for-11-jan-07.html

The next short term cycle in time falls on June 11. So we may see this downtrend continue till then.

Plan your trades and trade happy.

Nifty for 05 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 is continuing its consolidation pattern. We still have a higher bottoms scenario in place. The bounce for today seems very convincing. However, the Nifty is moving in a very tight range over the last few trading sessions. This is like a spring being coiled.

Which way will it jump? The probability remains up. Today’s bounce is accompanied with slightly better volumes. Which leads me to believe that the direction could continue up. That means we can still buy on dips. The crucial test will be 4140, as has been mentioned several times earlier too.

Plan your trades and trade happy.