Nifty for 26 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.

As was suggested on the weekend, we did see panic. As a result, we did see the indices opening with a downside gap, and continuing to stay down.

The banking sector contributed to the fall in a big way. Had it not been for the technology sector, the Indices would have taken a larger beating.

It is on panic days like this, that bottom fishing is very tempting.

I expect a minor downside tomorrow, and then, we could see a rebound. This rebound would entice traders to think that the short term bear phase is over. However, we can expect renewed selling at higher levels, not only for profit booking, but also by bears.

As of now, the Index has given up all semblances of bullishness. We could buy tomorrow after the 10:30 am, only if we have guts of steel, and place a strict stop loss at 4790. But it may be suggested to book profits quickly also.

For those who are a little more conservative, it is suggested to wait patiently to buy.

It is expected that the global cues are going to be mixed, due to the trading holiday in USA. That is also the reason why the market was traded thinly today.

Trade happy after planning your trade.