Nifty for 13 May 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 market moved exactly the reverse of what was anticipated for today. It opened with an upside gap, and then steadily lost ground through the day. The net result however, is almost the same. There seems to be a short term bullish pattern emerging. For this pattern to be validated, the market should move above 5066 and not violate the low of 4913.

In such a case, a short term bullish scenario may be utilised to buy. This is purely from the technical point of view. However, from a personal view, I am not too convinced about the anticipated formation of the bullish pattern. We may see further profit booking at higher levels. As a result, we may see further weakness in the stocks, even though the Index may show bullish signs.

Therefore, I may suggest extreme caution at this stage.

We have revised the orange band slightly to accommodate the new data from the market. During times of uncertainty, it is always advisable to stay away rather than burn holes in the pocket.

Trade happy after planning your trade.