Tuesday, May 25, 2010

Watch the Levels

Intra day and end of day volatility gives the impression of big moves going on in the Nifty. But, after the decline to 4900, the Nifty has really been moving sideways. For short term traders, there is some trading possible if you have a view on the trend. My view is: the trend is down, while we may be making a trading range at current levels. The view is based on charts, not just random!

For position traders, there really is no trsde in the Nify. The markets are probably developing a range. Then, once the boundaries of this range are visible, a break above will represent buying, while, a break below will repersent a continuation of the down move. It is true that this is a slow process, but then, what is the hurry?

2 comments:

kk said...

RESPECTED SIR
MARKETS DISCOUNTS THE FUTURE , BUT I THINK MARKET DISCOUNTS THE FORESEEABLE FUTURE AND IN THE FORESEEABLE FUTURE $1 BILLION PACKAGE PROVIDES SUFFICIENT TIME FOR THE EURO ZONE TO GET THEIR BUDGETS UNDER CONTROL.

ON THE CONTRARY INDIAN FUNDAMENTALS SEEMS TO BE PICKING UP ,NOW INFLATION LOOKS UNDER CONTROL,COMMODITY PRICES ARE FALLING.IT'S JUST A CORRECTION,NO MORE A BEAR MARKET,TECHNICALLY TOO WE ARE AT GOOD SUPPORT ZONES.

I THINK IT'S OVERDONE AS OF NOW AND WE SHOULD SEE MARKETS BOUNCING BACK
LETS SEE.

kk said...

RESPECTED SIR
NOWADAYS THERE'S BEEN A LOT OF TALK ABOUT THE 200 DMA. I RESPECT DMAs, BUT MUCH MORE IN TRENDING MARKETS.

WE HAVE A MARKET WHICH HAS DONE NOTHING IN THE LAST 1 YEAR, IT'S OBVIOUS THAT MOVING AVERAGES WILL MOVE UP WITH THE PASSAGE OF TIME AND NOW WE ARE QUALIFYING IT AS A BEAR MARKET BECAUSE 200DMA IS BROKEN. TOO MUCH RELIANCE ON 200 DMA TO ME IS DOUBTFUL.

WAITING FOR YOUR COMMENTS.