Nifty for 04 Jan 06

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 finally made a new historical high, as anticipated. It is natural to expect that we witness profit booking, as was warned yesterday. This would allow bulls to exit prematurely, and allow the stronger hands to pick up stock at lower levels.

The Bank Nifty continues trading weak, and the CNXIT also witnessed profit booking, again as expected. As a result, we saw weakness in the Nifty also. It could have been a good time to lock in profits at this stage.

We could continue to see some more weakness during this weekend, as most players like to keep light positions over the weekend. The trend could resume upwards from Tuesday.

Trade happy.

Nifty for 03 Jan 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 minor hitch which was warned about yesterday did happen rather like a shock for traders. This sharp fall would have triggered quite a few stops of extreme short term bulls, leaving them stranded out of the market. The short term rising supply line continues to coincide with the historical rising supply line.

The Nifty seems to be preparing for another assault towards a new historical high. I would continue to remain long, rather than try and pick a top.

The Bank Nifty is trading sideways to weak, but the CNXIT is showing even more strength. It is therefore expected that we may see some profit booking come into this sector. The chart displays the various levels where mental stops could be placed for trading, depending on the trading time frame.

It may be suggested to remain long if the close is above 3995. Tomorrow, the Nifty may see resistance between 4046 and 4055.

Trade happy.

Nifty for 02 Jan 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 seems relentless in its pursuit of making a new top. On the charts I see a minor hitch. The short term rising supply line is now almost coinciding with a historical rising supply line.

In such a scenario, I would tend to remain long, rather than try and pick a top.

The Bank Nifty is trading weak, but the CNXIT is more than compensating for it. The charts display the various levels where mental stops could be placed for trading, depending on the trading time frame.

Trade happy.