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.