Nifty for 01 Feb 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.

As was suggested, we did see a sharp spurt up due to short covering. Even though we see intraday swings of 3 to 5% the trend is still undecided.

The tops of ~5400 still hold. However, the bulls will take heart with the higher bottoms too.

Short term traders could buy on dips with a strict stop at the previous swing low of ~5100. Longer term traders could do well to wait for the previous swing top of ~5400 to be broken on the upside. That would exhibit enough strength in the market. After that is broken, then we could buy on dips.

Till then, it is better to stay out.