Here are my views on the Market, short term & the long term trend.
The Market moved in a narrow range on Friday, Nov 28. The narrow range suggests that the Market is undecided on its direction. It will soon come to a decision, and that may well be a decent move. Since the minor trend is up, a breakout above 2780 is likely to be a sign of some more steam in this up move.
Bear markets end with a process of base building. This process is NOT visible on the charts. It may well happen, if the Nifty were to spend time in the current trading range , which is between 2500 - 3200.
Since there are no patterns yet that confirm the development of a trading range, we assume that the primary trend remains down. This means, there is the possibility of another down move that could take the Nifty below 2200.
How do you trade ?
The strategy is different for traders and investors.
For investors, the end of the bear market is not visible. Buy only if you cannot resist entering the market. Invest only a small part of your available funds. If you have momentum stocks, switch to blue chips. Remember that the favorites of the last bull market may not be favorites in the next bull market.
For traders, going with the intermediate trend is the best way to trade. As I write this, the intermediate trend is down, but the minor trend is up. Then, look for short term opportunities to buy. Also, on any signs of distribution, go for short selling, or, stay away.
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► 2011 (200)
- ► November (9)
► October (28)
- Answers to comments oct31-11
- Process of Consolidation Likely
- Nifty Pattern Targets Reached
- Happy Diwali
- Stock Selection (based upon their historical volat...
- M&M Consolidation
- Niftnear ORB Trade
- A dip in an ongoing up trend
- TATA Motors Life Cycle
- Hindalco touches support
- Mystery of the missing trailing stop
- Nifty Live Oct 12-11
- Point and Figure Charts
- Aiming for a better trade
- Long term view of Nifty
- Zen stories for Traders
- Hero Motor Corp at its support level
- NR 7 in Nifty Weekly Chart
- trading with a gap open
- Silver Pushes against Resistance
- An unusual continuation pattern in the Nifty
- Sudden Rally
- Nifty at 4750
- There is a time to be old and a time to be bold
- Afternoon review
- Nifty - Long Term View
- Higher High - Higher Low pattern in CNX IT
- Bear market shows its strength
► September (53)
- The Bear Story
- Nifty in a well defined range
- Morning View Sept 29
- Nifty Options Trade
- Nifty on way to close higher for this F&O settleme...
- Learning Ideas
- Short term trend is up
- Something Better
- A tale of two trades
- Before the Open - Sept 26-11
- Reliance - something better
- Nifty - A long term view
- Adding value to your analysis
- ► 2010 (263)
- ► 2009 (293)
▼ 2008 (219)
▼ November (26)
- Weekend Reading, Nov 30.
- Rally, maybe
- This time it may be different
- Market will tell us when it is bottoming out
- Hard Work is the easiest way to success
- New Posts
- This Bear Market may last longer than we imagine
- Is there a rally ?
- Traders enjoy the process of trading
- Bear Market continues, Nifty, Sensex may go below ...
- Choppy Market with down bias
- What should Investors do now ?
- Nifty returns for a 'Test' of earlier lows
- The trend remains down
- A Matter of Trust
- Udayan in Amritsar
- Early Morning Review - Friday 14 Nov
- It is not about earnings downgrades
- Abrupt End to Uptrend
- Has the Bull Market Started ?
- The 2 PM Review
- So much volatility, Market resembles a Casino
- The Market Corrects its up trend
- Smart Rally, but careful as Nifty comes near resis...
- Quite times coming ?
- Surpirse Rate Cut may not add strength to markets
- ▼ November (26)