Nifty for 13 Mar 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.

Another level gone. Another one bites the dust.

I have been warning about the high expected volatility for almost two weeks. This type of volatility normally kills the small trader.

The BSE and NSE are not working in tandem now. On the NSE Nifty, I am getting an expected downside of ~4370 whereas according to the same measure the BSE Sensex was expected to achieve ~15400, which has already been breached.

All said and done, the chart shows a battle scarred minefield of upside and downside gaps, which suggest one thing loud and clear. There is no trend, and when there is no trend, it makes no sense to risk capital and play with fire.

It makes no sense saying that the market is deeply oversold. That does not prevent it from becoming more oversold. However, from all indications, the way Puts on the Nifty are so highly overpriced, something must give away.

I would still suggest long term traders to keep a watch for the ~4450 levels.

Also please keep in mind, that the whole of this month is expected to be violently volatile.

Trade happy after planning your trade.