Nifty for 28 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.

I am very surprised at today’s flat movement. Though we did see intraday volatility, there was hardly any movement on the daily chart. When volatility on the daily chart squeezes to such tight levels, we tend to see an explosive move either way.

Yesterday, it was suggested, “Tomorrow by mid day it is quite probable that we witness a short term bottom, and then a sharp rise up.” We were wrong on the timing but the sharp rise did take place.

The probability still remains upwards. However, probabilities can go wrong at times, as many readers may have experienced. Therefore, it is suggested to be very cautious. Strict stops may be adhered to. Those among us who are trading the derivatives market may hedge their positions.

Technically the position still remains … as a suggestion to buy on dips.

Plan your trades and trade happy.

Nifty for 27 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.

When we step back and view the daily chart, it was a boring day, with hardly any movement. However, if we close in, we see extreme volatility, which is liable to scare traders and trigger their stops. That is exactly what the market wants to do.

As was suggested yesterday, 26 June, we witness volatility. Therefore, it is suggested to be very cautious.

I have added two zones for short term traders to be aware of. Tomorrow by mid day it is quite probable that we witness a short term bottom, and then a sharp rise up. We have three support zones since the last fortnight’s up move. Since the range is limited, we could witness bounces from any of these zones.

Plan your trades and trade happy.

Nifty for 26 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.

It has been quite some time from my last post. However, so far, the market is still respecting the bullish sentiment.

Yesterday, a correction was expected but did not happen. In such an event, now we may be still holding our long positions.

Today, the Index has made another short term high.

We see quite some churning going on. Banks, which had been exceptionally strong in the last week have been sideways. IT stocks have been taking a beating. Metals have been strong. To make things short, there could be a good churn going ahead. This could contribute to the volatility in the markets.

I have also drawn up cycles in time from various historical highs and lows. This week we have several cycles falling together between today and 8 July. It is normally noticed that when such cycles in time fall in a tight cluster, we witness volatility. Therefore, it is suggested to be very cautious.

Plan your trades and trade happy.