A strong rally in the Nifty on Monday is likely to be followed by a period of consolidation. This is not unusual, since the Nifty has this tendency to go through a big expansion, then begin a process of contraction for the next few days. Individual stocks will continue to move up / down while this consolidaition takes place.
Returns from Investing / Trading
A new hedge fund starting in the USA says it aims to get "almost 15% per year" in returns. This will be better than the average return on hedge funds which is 11%. In India, because of higher interest rates, the aim should be to have higher returns. My own sense is that 30% annualized return (average) for a trader will represent excellent performance. Trader expectations must match the reality of life.
Membership of ATA and the MTA exam
A question on the MTA exam asks if membership of any society is acceptable for this exam.
My Notes: As far as I recall, MTA exams require the candidate to be a member of the MTA. This is a good opportunity to make a case of the Certified Technical Analyst (CeTA) certification that the Association of Technical Analysts is now offering. Please visit http://www.taindia.org/ for more details.
I have requests to review the charts of Bharti Airtel, RCom, McLeod Russell..... . For Bharti, a key question is: Has the stock touched significant support? A look at the weekly (long term) charts will show that current prices of Bharti has at the same level as in November 2008 when the Nifty was around 3000. The current price of 350 has seen many touches over the past three years. It seems reasonable to expect the stock to consolidate at current levels. The second question is: will it move up after such consolidation? There is no answer to this one. We have to follow the price to find out what it will do later.