Nifty for 20 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.

The challenge zone has had its effect as anticipated. As of now, the market seems to be looking to close the gap between ~4950 and ~5050.

Tomorrow may continue to be weak and we may some intraday short covering towards to end of the day. The short term trend may continue to be weak for another week. The bulls would be hoping for some sort of bounce back, but it is expected that they may not be strong enough.

In such a case, it would be advisable to allow the news driven negative sentiment to drive itself out.

Short term traders may wait to buy after a short term bullish formation.

Longer term traders may continue to buy on dips. The stop may be retained at a close below ~4950 for long positions.

Trade happy after planning your trade.