Nifty for 23 Apr 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 suggested yesterday, the Nifty seems to be topping out for the short term. The levels of the previous short term tops would not now into play, and could provide support.

From the longer term perspective, if the Nifty does not violate the previous swing high of 4971, then we could see much greater glory for the Nifty. If it does violate 4971, then it is expected that the rise may not be as rapid.

Now, a point which I want to forcefully make. These are my judgements based on the previous chart history. I could be wrong, and the market could turn bearish. In such a case, only trailing stops can protect our trades. Therefore, it is strongly suggested to keep trailing stops as each trader’s comfort level would dictate. So far there is no hint that the market could be bearish.

Tomorrow is the end of the derivatives cycle, which could contribute to some intraday volatility. Day traders could well stay away.

Trade happy after planning your trade.