Monday, January 26, 2009

Getting ready for tomorrow

As I write this, the American Markets are enjoying a decent rally, almost 2%. Indian markets are in an intermediate downtrend. Rallies should be short lived. The bigger gains should come from selling in these rallies. For day traders, it is possible to take trades on days when there may be the possibility of an upswing. The intermediate trend affects day traders, but less so.

The Nifty has seen four consecutive days with lower lows. The Index may now be ripe for an intra day rally. Any rally will face resistance at 2750.

When will the Nifty touch 2450 ? The answer is: Only the Market knows what it wants to do, and, when. The 2450 number does not emerge from any magical calculations. It is the arithmetic target of a trading range breakdown. Usually, trading range targets are met.

2 comments:

Sunil Malhotra said...

One of my friends told me that most of the companies hire people to maintain the share price, these share price operators work with brokers in Mumbai & Gujarat and maintain the share prices, if somebody has heard of this and if this is true there is big mafia in share trading who makes the money not the common man.

just brooding said...

sir,
kindly comment on your targets of 1500 nifty and 1200 nifty.I would understand that bottoms are made when 50 weeks averages cut down 200 weeks averages(not scientific but an observation from the past charts0
also did you mean cover shorts when you commented about an intraday rally in this writeup.
regards
Sanjeev

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