Wednesday, May 7, 2008

Nifty Recap For The Day!


Hmmm first it was the Food, then Oil, what next? Water! I guess INDIA has arrived and We are here to stay! That’s what I call subtly recognizing India as the next superpower! I am loving it, I don’t know about you. Anyway coming to today’s Nifty action. Very volatile but did give few good trades to penny pushers. To trade in Nifty in these kinds of days you got to be very agile especially if you are a scalper. I am afraid I am not that nimble but then I have my cake somewhere else (made a few bucks in SBI and ONGC). I did mention support for Nifty in my last post and I also did say 5100 looks hunky dory. See the low of the day 5101.25. On the daily chart we have made a small hammer. Also as said earlier the 200 DMA is a place where maximum resilience will be shown by both the Bulls and Bears and that’s what happened today nobody wants to relinquish control that easily. Nothing major has changed over night so we maintain the same status quo. There are many like me who are perennially confused on what stocks to choose and what to dump for them (me included!) here are the Three Golden Rules;

  • Buy strong stocks in strong sectors in an upward-trending market.
  • Short weak stocks in weak sectors in a downward-trending market.
  • Stay out of the market and in cash when there is no definable trend.

Yeah I know it’s easier said than done, well I am tryin so can you! Ok just to make myself feel a little worked up I end up with a quote from Bruce Lee…

"To hell with circumstances; I create opportunities."

2 comments:

Anonymous said...

third golden rule is very hard to follow :-(

Tryin2Trade said...

Yeah Prad the hardest is indeed the rule number 3.It is ironical though how desperate we become if we have idle cash!