Friday, August 29, 2008

Getting Ready for the Coming Week

The Market closed on Friday with a lot of cheer, but will the uptrend continue on Monday ? There is a lot of volatility in this market, which is essentially directionless. We have many down days, then sudden sharp up moves, giving the impression of intense activity, with the net result still a zero - the market finally stays where it started from.
For the Nifty, resistance comes around 4400, then at 4500. The Index must make an effort to touch and cross 4400. A decisive close above 4400, that is sustained for three days will be the first sign that the trend is moving from down to up. Till this happens, we assume that the trend remains down.
Within this broad scenario, trading tactics must be defined. A sharp dip is a reason to take profits on short positions, maybe even take a small long position. The same applies if you see a rally. Take profits, then on signs of weakness consider going short. Not all trades will make money. That's okay. The idea is to ensure that your profits are more than your losses.

1 comment:

Deepak says sudershan is Best said...

Mr Sudershan Sukhani Market did exactly the same which you said it moved to 4360 fom 4205......

And you think that primary trend is down if market cudnt succeed to cross 4400 decisively ....

All these Things are so helpful for future trading.. I thank you for providing market insight.. We need ( all new trader )just few clarification as you write many times any sign of strength and weekness in market take positions ....

Can you please clarify sign of strength and weekness ..

As per my knowledge if markets and shares are making new lows day to day and could not reach the previous day high it is a sign of weekness and Opposite is same for strength & other important thing for judgement is volume ....

If you write on this it would be really helpful for us......

I open your blog atleast twenty times and read all your posts again so i can be a better trader It is making me a better trader...

Thanks for all this I would never forget you all of my life wherever I go you are my hero........