Friday, February 20, 2009

More weakness ?

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!


chandu said...

Good morning sudarshan ji,yes u are right more weakness seems to might be interseting day a head of expiry and holiday on monday.

Mind Without Fear said...

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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