Home > NIFTY Strategy > Markets remain in downtrend-NIFTY at 3 month low

Markets remain in downtrend-NIFTY at 3 month low

Tuesday, August 21, 2007 Leave a comment Go to comments

Indian markets have accelerated the pace of their downtrend. NIFTY looks set to retest 4000 again. Although it also might happen that it turns up after getting close to those levels.

Individual stocks are looking ugly and many of the large cap stocks have gotten into a medium term downtrend. The only way to make money now is to go short till the short term trend reverses. Till NIFTY stays below 4350, one can assume a short term downtrend.

Other way to play this market is buying the dips around support levels and play for a bounce. Like today, we played a 2% bounce on WIPRO which had strong supports at 440 levels and it bounced from there. DLF which had supports around 565 levels, didn’t hold and fell badly after breaking that.

So if you are good at short selling, then you might be able to rake in decent amount of money.Otherwise just be happy with the fact that you are atleast not losing and are able to make those 1-2% percent trades.

Till we are having this heady cocktail of events-from yen carry trade to worldwide credit problems to Left’s threat to pull out of Govt. , we might have to get used to high volatility. Conserve your cash till then.

I feel the markets might continue to fall till everybody starts feeling pessimistic especially the short term traders. Are markets again going to fool the majority?

Categories: NIFTY Strategy
  1. sagecapital
    Wednesday, August 22, 2007 at 12:09 pm

    Murtaza- How can you be so sure that the only way forward is up?
    Were you witness to the 1999-2000 meltdown? Or have you only witnessed 2003-2007 bull run?
    Better thing to do might be to be prepared for both. As a trader “react” rather than “predict”.

  2. Murtaza
    Wednesday, August 22, 2007 at 9:45 am

    Next target 13500 sensex. LONG SUPPORT at these regions, if it kills that ….. pata nahi where we might be going next, filling up which gaps … but overall, the trend is up and we will be moving up and up …. nowhere else …. the million dollar question – When and from where?

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