Nifty for 11 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.

It was suggested precisely a week back that the market is waiting for the news based event viz. the expected rate cut in the USA. And during this week, the market is playing itself out, discounting the expected event. When the news comes in, we can expect one of two things.

The rate cut happens.

The rate cut does not happen.

If the rate cut happens, the market has already expected it and has already factored that expectation in the price. In that case, it will be business as usual. We can expect some profit booking to the “expected” news.

However, if it does not happen, then we can expect some panic buttons to be hit. In such a scenario, it is always advisable to keep tight stops.

It was also suggested last week that …. “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”.

Maybe … the market may make a short term top around these dates.

The last word. The Nifty still does not seem to have peaked. In such a case, we could retain our long term bullish outlook, and it may be suggested to buy on dips.

Trade happy after planning your trade.