Daily Nifty Analysis for 28 Nov 06
These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, check the link below.
As warned yesterday, we did see some weakness in the index. Unfortunately, many people could not have taken advantage of it, because of the huge 30 point gap down open. At such a stage, a trader is always in two minds, whether or not the weakness will sustain or not.
In any case, the weakness could persist just for a couple of days, and I find support levels for the Nifty at 3913, 3880 and 3855. These levels would be monitored on a daily basis, as they are dynamic, and change with additional market information.
I would change my bullish view only if the previous bottom of 3794 is violated convincingly. Therefore, bears among us could please exercise caution.
Those among us who have exit long positions, could re-enter at lower levels, once any of these support zones exhibit a convincing bounce.
As an aside, I thank all those who have welcomed me back, both with bouquets and brickbats. That is what always makes the markets, when people agree to disagree.
Or else, the market would be a very boring place to trade in.
As far as the comment pertaining to the Fibonacci Projections are concerned, it is not something extraordinary which I have discovered. A search engine would throw up huge number of links on how to use Fibonacci levels in trading.
What is special here, that I have developed my own method of projection, which I do not wish to disclose. If someone is persistent, they could also discover the same method. But that means using one's brains, and applying common sense on our own. Not just getting it spoon fed.
These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, check the link below.
As warned yesterday, we did see some weakness in the index. Unfortunately, many people could not have taken advantage of it, because of the huge 30 point gap down open. At such a stage, a trader is always in two minds, whether or not the weakness will sustain or not.
In any case, the weakness could persist just for a couple of days, and I find support levels for the Nifty at 3913, 3880 and 3855. These levels would be monitored on a daily basis, as they are dynamic, and change with additional market information.
I would change my bullish view only if the previous bottom of 3794 is violated convincingly. Therefore, bears among us could please exercise caution.
Those among us who have exit long positions, could re-enter at lower levels, once any of these support zones exhibit a convincing bounce.
As an aside, I thank all those who have welcomed me back, both with bouquets and brickbats. That is what always makes the markets, when people agree to disagree.
Or else, the market would be a very boring place to trade in.As far as the comment pertaining to the Fibonacci Projections are concerned, it is not something extraordinary which I have discovered. A search engine would throw up huge number of links on how to use Fibonacci levels in trading.
What is special here, that I have developed my own method of projection, which I do not wish to disclose. If someone is persistent, they could also discover the same method. But that means using one's brains, and applying common sense on our own. Not just getting it spoon fed.
