Nifty for 18 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.

I was watching the Nifty crawl slowly to 4140 today and on an impulse checked my previous projections again. These projections I had posted on my Blog on 4, 5 and 6 December 2006. A lot of water has passed under the stock market bridge since then, almost six weeks. For those interested, check the following link. http://dusant.blogspot.com/search?q=target

It was expected that the Nifty would start correcting on Wednesday or Thursday. It does seem that our expectations have not been met. Frankly, it is unbelievable that such an occurrence is taking place. I have started getting messages asking me when we can expect a correction. This is a dangerous sign for fresh bulls. Bulls who want to enter the market will lose their patience and then enter at higher levels.

On Thursday too, the Nifty moved within a tight range throughout the day. The only difference being that there was a bull shock today, when the Index plunged sharply today. In my very humble opinion, this sharp fall has triggered quite a few stops of bulls, and now these bulls will be waiting to re-enter the market. Which could … just could push prices up higher. In that case, we could have a higher closing on the Nifty Future, this settlement.

The Nifty up move was again capped at the rising trendline. If this trendline is violated convincingly, we could have a massive and quick bull run.

The mood is still bullish. So it is suggested to stay bought. With tight stops, of course.

Trade happy.

Nifty for 17 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.

Wednesday was almost like Tuesday. The Nifty moved within a tight range throughout the day. Consolidation seems to be continuing.

The Nifty move which is pushing at the rising trendline seems to have failed, at least for today.

For Thursday, short term traders could place their profit booking levels at the 4060 levels. Intermediate term traders could watch the 4045 levels, and longer term traders could concentrate on 4032. If by any chance, we see a crash, then a good level to buy the Nifty would be 3935.

The mood is still bullish. So it is suggested to stay bought but keep tight stops.

Trade happy.

Nifty for 16 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.

Tuesday also opened with a gap which reflects the excessive bullish sentiment. However, the gap was closed almost immediately, and the Nifty meandered within a tight range throughout the day. From the looks of it, today’s movement seems like consolidation, like the winding up of a spring.

On Monday, we had shown a chart, which showed the Nifty pushing at the rising trendline. That trendline has again capped the upside movement.

For Wednesday, short term traders could place their profit booking levels at the 4060 levels. Intermediate term traders could watch the 4040 levels, and longer term traders could concentrate on 3970 to 3980. If by any chance, we see a crash, then a good level to buy the Nifty would be 3930.

The mood is still bullish. So it is suggested to stay bought.

Trade happy.

Nifty for 15 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.

Monday’s gap opening on the Nifty, suggests the bullish sentiment is continuing. As was suggested on Friday, we did see players booking profit today.

On the Nifty chart, we see an up-sloping blue dashed trendline, which is inhibiting the free movement of the Nifty. It has had several touch points where supply has been witnessed. Therefore, it is quite possible that we may see some correction. The earlier tops, around the 4030 levels are going to lend solid support.

Bears are probably going to test this level and penetrate it mildly. All I can suggest at this point is to stay bullish. This run may last for another two days, and we may see some short term resistance coming in on Wednesday 17th or Thursday 18th.

I hope readers have noted Friday, the 12th January, chart as a benchmark for staying bought or deciding levels where profits could be booked.

The market sentiment continues in positive territory. On Monday, the volumes recorded are lower than Friday, but are still healthy.

As suggested on Friday, the Bank Nifty did see profit booking at higher levels.

The CNXIT also opened with a gap and witnessed profit booking.

The mood is still bullish. So it is suggested to stay bought.

Trade happy.