Thursday, May 8, 2008
Nifty Hourly and Daily Outlook - May 9th
Starting with the hourly chart of Nifty...Comments are added on the chart....Yesterday's market action was consolidation and it looks to me like its building a case for one last spurt upward. At this point I do not know how high but it looks higher. If you see the channel in above post, this is what will define market movements in the following days. We remain bullish as long as the channel is respected. MACD could give an upward crossover soon and stochastics also look like its bottoming. Important figures are 4950 - Really key for the bullish case and On the upside to me it looks like 5100 is important. We need to cross this to the upside to regain some kind of momentum.
My positions update - I closed my shorts yesterday at 5090 levels(taken from 5250 so thats 150+ pts profit) and flipped to small long positions as I said I would probably do in earlier post. I am looking for a good bounce to come into Monday or Tuesday of next week. However as I said before 4950 is key...Break this and we are done.
Next the daily chart.
Okay here also I have added comments on the chart. The most interesting things I see here is the volume factor as I have pointed out and explained in the chart above and the fact that we have a possible triangle building up...Dont want to look further than few days right now but I am bullish very short term and remain bearish over medium term...