Nifty for 18 Oct 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.

Wow, another violent day in the markets. At times like this, I would like to remind readers that it is not necessary to trade everyday. Your broker does not hold a pistol to your forehead, and force you to trade.

So far, the trend is still up, with a higher top higher bottom pattern. I would still continue to retain a bullish outlook. Until a close below 5120.

A corrective phase is the most difficult to trade with huge and unexpected volatility. Though I am not an Elliottician, we could be entering a phase, which could be falling in the corrective Wave 4 category. On 9 October, it was suggested that we are looking ahead to a cycle in time on 24 October. Let us see what next Wednesday has to show us.

Plan your trade and trade happy.

Nifty for 17 Oct 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.

Good God!!! I think I should stop making prophetic statements. Never in my wildest of dreams did I imagine that the market would open on downward circuit.

The biggest question which would arise in a trader’s mind is, what direction is the market headed? I do not have a crystal ball to gaze into the future. But all I can do is to suggest how to trade this market.

Fact One: The long term trend is up.
Fact Two: The intermediate trend is up.
Fact Three: The short term trend is down.

I would choose 5100 as a benchmark for deciding the short term trend. If the Nifty violates 5100 on the downside, then the short term trend would be labelled as continuing down. If it violates 5596 on the upside, then we may label it as a reversal of the short term trend, and may buy on dips. If it does neither, and stays between 5100 and 5596, then we may label it as a sideways movement in a short term downtrend.

I would still not suggest shorts, but then I may be foolish. I would still go with the trends. I may suggest shorts only for short term traders with a strict intraday stop at 5600.

I would buy only after a confirmation of a bullish pattern. A confirmation would mean that the Nifty moves above 5600 and does not violate 5100. That is a 500 points range … agreed. But then, the Index does not move 10 percent everyday.

Plan your trade and trade happy.

Nifty for 16 Oct 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, the market has indeed achieved the predetermined target. It has also tried to break it, but found some resistance. In all probability, we could see some stronger resistance here. We may use this opportunity to buy on dips. The weakness which was anticipated on Monday may happen on Wednesday.

Where does a trader buy? Obviously, it depends on each person’s individual risk appetite. But always keep in mind to buy only after a confirmation of the bullish pattern.

And if the market does not correct, it is suggested to keep the trailing stops intact, and enjoy the ride.

Plan your trade and trade happy.

Nifty for 15 Oct 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 market seems to be in a real hurry to achieve targets. The projection mentioned on Friday has been achieved within one trading session. What more can be added except the old broken record?

Plan your trade and trade happy. It is suggested to keep the trailing stops intact, and enjoy the ride.

It was anticipated that we could see a weak opening but that was not to be. From the interaction I have with some traders, it does seem that bulls are getting anxious to enter the market. In such a scenario, it is always a little dangerous to buy. However, as is always suggested. Keep our stops and enjoy the ride.