Nifty for 07 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 short term trend is still down. The intermediate term trend is still up. Please remember, this is on the hourly chart. If we look at the daily chart, we have to follow the same principle. The long term trend is still up.

Today, the Nifty has re-tested and confirmed a support zone. As was suggested yesterday, we did see a gap down opening, in the first hours of trading. We also did see some buying support coming in, by the way of short covering.

As suggested yesterday, wait for a confirmation of the end of the short term downtrend, and then readers could buy. This would be tomorrow, when the Nifty violates 4230 on the upside, and then does not violate 4161 on the downside.

Plan your trades and trade happy.