Nifty for 04 Dec 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.

Not much needs to be said of yesterday’s chart. It has broken out from the yellow zone.

It is a sign of bullishness which we have discussed since a fortnight.

Today the Nifty has showed some hesitation at a psychological level which was an earlier target level. The market is hesitating for a very simple news driven event. The rate cut to be announced on 11 December in the USA.

Till then, it is expected that the market could meander a little aimlessly. In any case, the direction is expected to remain upwards. For bullish positions, the trading stop could be suggested at 5600. However, the yellow zone which has been applying resistance earlier could be expected to give a short term support. And may be pierced slightly on the downside.

There is speculation also that the BIG players are buying the Nifty futures and selling stocks. Ultimately, it all boils down to one thing. The tail can wag the dog for a short period. In the final countdown, the dog owns the tail.

We have a short term time cycle falling tomorrow i.e. 5 December. A longer term cycle falls between 13 and 16 December. Let us wait and watch and see what the Index does on these days.

Trade happy after planning your trade.