Thursday, July 7, 2011

The expansion Phase: Like a rocket

After five days of narrow trading ranges, the Nifty finally took off , and it did it in style.

On Thursday, (today), the Index opened almost flat, then broke above the 15 minute high, never looked back, closing at the high point of the day, at 5745, a good 105 points up from its previous close.

This column has highlighted the cycles of contraction and expansion which are probably the only predictable cycle in the market.

After contraction comes expansion - this much is certain. When the expansion phase will come is more or less unknown, but it will come.

After expansion, markets become choppy, as theya djust to the new levels.

8 comments:

rocky said...

respected sir,

I was reading your blog and you mentioned that you booked at Range Expansion. this move may be more higher so that one can hold to enjoy the trend.How can one identify the Range Expansion can you ellaborate.. if possible give example also.

ethicsfirst said...

U r proven wrong for the 4rth time now., Markets r opposing u continously,ur views r getting slapped everytime.

sudhin said...

Dear Mr. Sudarshan,
Stocks like HDFC are near 52 week high, what is to be done to such stocks is it a buy,hold or sell? for a positional trader. Also could you share your view on how to know when it is really over bot?
Thanks,

shub11 said...

Hi Sudarshan ,

I really follow your advice on ET NOW wish you were more active on your blog also .....

Regarding your trading calls on ET NOW , please advice how to play them , shall one got with them as soon as the market opens or wait for 15 - 20 mins .


Thanks
Umang

rajesh said...

dear sudershanji,

I have JULY 5400 PE @80/-,should i hold it or booked lose.

plz advise..

Rajesh Agarwal

AAR VEE said...
This comment has been removed by the author.
sudhin said...

On ET now you said that you were not investing now in the markets but are probably trading, long back your traget for Canara Bank would be 1000+ and you also suggested buying HDFC on declines some time back could you please update on these two calls as of today. I am a bit confused as you have also predicted that the nifty would be 4k sooner than later.
Finally updates on this blog are coming like the leap year, hope you will calrify if you plan to stop udating.
Thank you for your guidance on tv and on this blog.
Sudhin

rajiv malik said...

omg this blog is dead now.....