Nifty for 21 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.

Is the correction over? From today’s sharp retracement up, it would seem so. In any case, we had expected the correction to be mild. However, the market will soon tell us. If it violates 5050 on the downside, we may assume that the correction is still continuing. If it violates 5168 on the upside, then it is over.

Today, the low has just kissed our monitoring level of 5066 as was mentioned yesterday, and retraced dramatically. This is a point in favour of the bulls.

As on today, the probability of a mild downside move seems more. It is quite possible that the Nifty may test the ~5050 levels once again. The market has presented both the bullish and bearish scenarios.

The market sentiment is still bullish. This allows us to suggest that dips may be used to buy.

The only chink in the Nifty’s armour seems the banking sector. If we have any positive stock or sector specific news relating to the banking sector, we could see the Nifty fly.

Trade happy after planning your trade.