Nifty for 25 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 yesterday, the Nifty did try to close the gap. The bounce back up is also very evident on the chart. It suggests that the bulls have an upper hand as of now.

The short term bottom which was formed today may turn out to be significant, if we see a short term bullish pattern emerge today. The short term correction seems to be over, both in terms of time as well as price.

Therefore, I suggest bulls to be prepared to take advantage of this.

On the flip side, we have been seeing the sentiment has been fluctuating wildly. Therefore it is suggested to adhere to s strict trading plan. Short term traders may retain ~4990 as a trailing stop for long positions.

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.