Nifty for 18 Jan 08

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 the Index is relentlessly slicing through all the supports. If it carries on further like this, then we may see the intermediate term trend turn down too.

The flip side is that the fall is accompanied with very low volumes. Therefore, as soon as some buying interest comes in we are likely to see a good bounce back up. Till we see such a bounce, and a short term bullish pattern, it is suggested to stay out.

Those among us with slightly shorter term horizons may use a rise to short, keeping tight stops. Any move which is against the trend is generally volatile, and we may find ourselves on the wrong side of the trade.

In volatility, it is always prudent to hedge positions. We have a cycle in time falling during the weekend. Let us see what it brings.

Trade happy after planning your trade.

Nifty for 17 Jan 08

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 Nifty may encounter resistance around the earlier zone. The interplay between the support and the resistance will now determine the future of the Nifty. In fact the Nifty has made a short term bullish formation, but fell back sharply from the high of the day. If the Nifty is able to break 6015 towards the upside, and does not violate 5875, then we could assume that the short term trend has reversed to up.

Going ahead, it is expected that the Index could remain flat to weak for Friday and even Monday, and then consolidate on this short term bullish formation.

I can only repeat yesterday’s statement. Let the negative sentiment be weaned out of the system and then think of buying again. Please wait for a short term bullish formation and then take a risk for buying. As we know very well, bottom fishing burns.

Trade happy after planning your trade.

Nifty for 16 Jan 08

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.

On today’s chart, we see two aspects, one hugely bearish, and the other, a little encouraging for the bulls. The bearish part is the gap down opening, and the encouragement for the bulls is the bounce from a previous support/resistance level.

Our stop of 6110 has been triggered. In such a case we could be out of the market. The huge gap down opening seems to have been triggered by the negative sentiment worldwide.

Further, the Nifty has also made a short term bearish formation.

Therefore, because the pink support zone box has been violated convincingly, we must assume that this support zone will now offer huge resistance, if and when the Nifty tries its move up. Going ahead, it is expected that the Index could remain weak for another day or so, and then make a short term bullish formation.

Let the negative sentiment be weaned out of the system and then think of buying again. Please wait for a short term bullish formation and then take a risk for buying. As we know very well, bottom fishing burns.

Trade happy after planning your trade.

Nifty for 14 Jan 08

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 chart pattern, it does seem that the Nifty is attempting to make a short term bullish pattern. In that case, it could continue its secular upward move soon.

Traders could take the risk of buying now, and place a stop at 6100. The short term uptrend would be confirmed if the Nifty moves above 6245 and does not violate 6100.

Trade happy after planning your trade.