Nifty Trading Notes (Refresh the page to get the latest page)

Aug 20 2008 End of Day

Nifty = Slow  Recovery

Is near term bottom in place?

What happened today? - A small recovery. The most heartening part of today's trading action was that Nifty never dipped in red throughout the whole trading session. But that's about it. On Upside, Nifty hardly exhibited sustainable strength and after some minor choppy action, Nifty closed up 47 points. With today's closing, Nifty is now up 100 points from yesterday's low of 4317.

One can now expect a sustainable recovery on the upside till 4600, provided Global cues are supportive. This theory will get negated if Nifty closes below 4317 on closing basis. Any declines because of Global cues can be used to accumulate Nifty till it holds 4317.

Context - The market has been on one way slide from 4640 to now 4317. From 4317, Nifty managed a bounce to 4415. Technically, Nifty should continue with the process of recovery.

What Next? - The financial markets are generally unpredictable. Global cues only complicate the matter. But with a bottom of 4317 in place, and Nifty managing a process of recovery on closing basis - the technical bias of Nifty is now +ve. It means any gap down because of Global cues should be used to Go Long as long as Nifty remains above 4317. It is only below 4317, the technical bias of Nifty can become negative.

Levels to watch out are - 

Positional Trade

Open Position  -

Closing Stop Loss means if Nifty dips below 4310 post 1:00 pm

The prices above are futures price

Have a good evening. I'll see you tomorrow.

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Happy Trading

Cheers

Deepak Singh

Market Analyst, State of the Market

YAHOO IM - stateofthemarket

Disclaimer - The Nifty trading notes is Deepak's perspective on the market. The stocks listed here have been selected based on recent performance, and have probability of success in near term. But remember, it's still a probability, and chances are that stock may still not perform as expected. The column is purely for educational purpose. Please use your own discretion in trading. Trading Futures and options involves significant risk. You must consult your own financial advisor before trading to determine if it is suitable for you. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers.