Nifty for 14 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.

It was suggested yesterday that “the next move could be really fast and furious. As of now, the possibility of the future direction is changing to up.” The market has indeed showed that it is supreme, and trapped the stops of bears, who were hoping that this would be the final frontier.

It is getting very dicey for a trader here. A huge gap up opening does not allow a positive close? It is something to ponder about. What it tells us that the market is still unsure of the direction. The probable direction is still bullish, and we may see some small downside.

In such an event, it can again be suggested that any dips may be used to buy in. We must keep our stops to avoid disastrous loss of capital. A short term stop could be a close below 4440.

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

Plan your trades and trade happy.

Nifty for 13 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.

It was suggested yesterday that “With the index refusing to move down, it is quite probable that we may even not see a deep enough correction.”

It is also true that the next move could be really fast and furious. As of now, the possibility of the future direction is changing to up.

For tomorrow, if the high of 4539 is violated on the upside, and if the low of 4452 is not broken on the downside, then we can expect the short term trend to change to up. If none of these levels are broken, then the trend would remain sideways. As of now, the Nifty still seems to be consolidating rather than correcting.

The projected downside target of around 4300 now looks like a low possibility. In any case, any dips may be used to buy in. We must keep our stops to avoid disastrous loss of capital.

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

Plan your trades and trade happy.

Nifty for 12 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.

As we can see, for the last few trading sessions, the Nifty has moved in a tightly coiled range of about 100 points. When a trading range of 100 points in one day is normal, the market is telling us something. It is suggesting that it does not want to move fast now, but later, when it moves, the directional move could be explosive.

With the index refusing to move down, it is quite probable that we may even not see a deep enough correction.

The short term trend is still down. As far as deciding about the short term trend is concerned, our levels of yesterday still stand. For tomorrow, if the high of 4539 is not violated, and if the low of 4452 is broken on the downside, then we can expect the trend to continue down. If none of these levels are broken, then the trend would remain sideways. As of now, the Nifty still seems to be consolidating rather than correcting. It could gather more downside momentum within a few days.

The projected downside target of around 4300 still stands. These dips may be used to buy in. Of course, without saying, we must keep our stops to avoid disastrous loss of capital.

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

Plan your trades and trade happy.

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.

Nifty for 10 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.

Today’s down move may be attributed to the hype associated with the 9/11 landmark in history. As was expected, the trend was weak for the end of day analysis. However, due to the gap down, we saw a fantastic recovery for the day. The Nifty has reached a historic supply line again. It could be expected to receive resistance around those levels.

Going ahead, we could expect some more weak bulls to be shaken out in a correction lasting just a few days. Today, the longer term perspective may be viewed. The next objective lies between 4680~4690. In that case, the Index may well make a new historic high later. How much time it takes is anybody’s guess. However, I could hazard a guess for it to be around the expiration of this derivatives cycle.

It may be suggested to just start accumulating around the 4350~4400 level. We need to choose the sectors carefully as we see the IT sector being weaker, but the Banking sector stronger than normal.

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

Plan your trades and trade happy.