Na… I aint in a mood to do a Nifty this week, its not only getting to be frustrating but more importantly its even getting confusing. The coil is getting tighter; the wait for breakout in either direction is getting painful. No wonder they say PATIENCE is a virtue one should have aplenty when trading. Nothing fancy in today’s post just posting a daily chart below, it also has an inset of line chart. The idea is to show how the range is getting smaller day by day and how difficult it is getting to take a clear call.
The hourly below as usual makes a things wee bit easier, the two bands in red at 2780 and 2850 are pieces de resistance! All the MA’s are lined up in perfect bearish order, the 20 (green), the 50 (blue) and the 200 (red). A small positive divergence is in the making due to the oversold nature which is likely to result in some kind of a pullback. Maybe shorts would like to take off some money here off the table and look at higher grounds to short further?
Like I had said earlier, it’s getting really difficult to trade Nifty, and it’s better to concentrate on individual stocks which are generating some good swings. Maruti, GMR and Aventis Pharma are a few stocks which are showing good relative strength vis a vis Nifty.
"The difference between the impossible and the possible lies in a person's determination."
Tommy Lasorda
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