Hurst Cycles Trading Software - Accurately Forecast Nifty and Stock Cycles

Tuesday, May 20, 2008

Market Outlook - May 21st 2008


Nifty intraday chart attached. I have added comments on the chart. Open in new window to read this. My view is that the public is trained to buy the dips. Beware against this tendency. There is a time to buy and there is a time to sell...Be careful if you are a shorter term player.
Position Update - As you know from earlier updates, I am short and will look to cover today and maybe short later at higher levels wherever we bounce back to.
Today important lvls to watch on downside is 5100 and 5070/5050. On upside again 5100, 5120 and 5140/5150 is important. I am looking to cover shorts at 5050 area or max 5000. 5000 is very strong support.
Best.

4 comments:

FJB said...

Lee, In my view it will be more profitable to remain short till Friday. The bounceback will come and whether it will come before May expiry between 27th & 29th or later upto June 12th is to be seen. I plan to go long on Friday considering this.
Do you feel it will bounce back before that if you are covering today?

Lee said...

yes i see some bounceback in between also...but you are right..might be better to hold till friday...what i am planning today is to close shorts at maybe 5050 if i get it...and then short in very small amounts a bit higher...one thing to note here is we are bullish as long as we are in the channel..so this is worrying my shorts ;)

Again this all depends on how much risk you are willing to take..
5000 is very strong..we might not break it easily!

DIN said...

Hi, I accept ur word. I thing if close after 5165 , it may change trend to 5345.

Anonymous said...

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Rgards,
Raj.