Nifty for 14 Aug 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.

Today was a neutral day. The blue dotted supply line is still exerting its influence.

With some time based calculations, we are getting a cycle in time date around 17~18 August 07. It will be interesting to note what the Index does around that time frame. From the movement of today, it could possibly be weak for a couple of days, and then make a bottom for this correction around 17~18.

The possible zone where the Nifty could take support is around 4145~4178.

As far as the longer term perspective is concerned … technically the position remains as a suggestion to buy on dips. Investors could now look at about the 4145 level. Profit taking also may be done quickly, unless we are really long term investors.

Plan your trades and trade happy and enjoy the Independence day holiday.

Nifty for 13 Aug 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 on Friday that the correction is still not over. From the pattern today, it does seem correct. The up move of the last two trading sessions does suggest that these 100 odd points are a correction.

Today’s move was fuelled by one pharma and the auto pack. But Tata Power was the major driver because of the news related to power. Had the technology pack participated, I would be comfortable in saying that this move is broad based.

This reinforces my above mentioned understanding of today’s up move. Since the major move is still up, it could be suggested for short term traders to possibly buy on dips with a strict stop. However, please keep in mind that the short term trend is still down, so buying could be done on deep down moves.

As far as the longer term perspective is concerned … technically the position remains as a suggestion to buy on dips. Investors could remain cautious about the 4235 level. Profit taking also may be done quickly, unless we are really long term investors.

Plan your trades and trade happy.