Nifty for 07 Jan 08

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.

The previous high of ~6200 and the second congestion around that zone now seem to be lending a supporting hand to the Nifty.

In spite of today’s weak opening, that seems to have held out. Therefore, it is logical to assume that this trend should continue. In such a case, this would also be an ideal place to insert a trailing stop, with a close below 6200.

As mentioned earlier, it is always advisable to stay with winning sectors rather than hope that the losing sectors would turn up. There are signs of profit booking showing. That is the reason why we are witnessing higher than usual intraday volatility. It may be a good idea to maintain stops for the present time. Since the uptrend is so strong, shorting seems out of the question as of now.

We are also seeing a cycle in time around 13 January. It is possible that the Nifty may make a decisive move around that date.

Trade happy after planning your trade.