On Friday morning, the short term scenario is not optimistic. Overnight, American markets have fallen, with the Dow at a six year low. if the Nifty were to touch a six year low, then we would be at 920. Since we are currently trading at 2790, let us be thankful for small mercies.
A narrow, tight trading range for the Nifty is between 2760 and 2850. A dip to 2760 does not justify selling since there is some possibility of support re-emerging. While market may eventually fall, short selling is likely to become difficult, with support coming in at lower levels, every time the Nifty declines. This is what I meant on CNBC yesterday (thursday).
A dip in the Nifty to 2760, is not automatically a sell. If the market consolidates, then the there is a possible long trade with stops below the consolidation. Now, will the market oblige us by not falling further ? This is unknown.
Have Fun!
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► 2011 (200)
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► 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
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► 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
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► October (28)
2 comments:
Good morning sudarshan ji,yes u are right more weakness seems to be.today might be interseting day a head of expiry and holiday on monday.
Dear Sir,
despite your suggestion for us to "Have fun!", I for one am having a miserable run at the market, getting whipsawed time and again.
I guess that is part of trading - there will be weeks when the market movement will be incompatible with whatever system you have developed. The only thing that I can hope for at this times is keeping volumes low and trading less.
I am having a bad time but not giving up. The central challenge for me is to trade less.
Thank you again for all your writings. In good times or in bad, they - your blog - brings me both intellectual stimulation and joy. And lifts my spirit if it has been battered by loss on two or three days running ......
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