Market up on short covering...July 18, 2008

Market witnessed a good rally yesterday on the back of short covering. What is important to note here is that the upmove is driven by short covering and not due to a fresh buying interest. So momentum is still down. We will continue to short this market on each rise until there is a real sign of a reversal. Today, we will see RPL charts..Stock has broken down nicely from a symmetrical triangle. One can short this for a target of 140. This is a positional short.

Today, we have positive cues to start with. The cooling crude, lesser than expected inflation, +ve world market. So we will open gap up...will we sustain a higher close??

Market views and updates for July 17, 2008

As we ride the wave down happily, lets take a look at what more is in store. Firstly the cues, global cues are positive today. Crude is down as well. So signs are good to start. We have inflation numbers being released at 5PM today. We will have a good gap up opening of around 2%. That will be good for us traders, as it is one more opportunity to short. The attached chart shows clearly how we are in the 3rd leg of the pennant. Still reiterating current downmove target around 3600 levels. So stay SHORT and add shorts at each rise will be the mantra for today.

TCS has taken a good support at 726 and has closed above this yesterday. Ths stock is also slightly oversold. One can buy this stock today for a target of 760 with a stoploss below 726

Market update july 16, 2008

Power problems at home...and I couldnt update blog on time today. Also, I dont have access to charts in office to post here. My views are unchanged. Short it is till 3600. Yesterday we broke down nicely from the flag so now the 3rd pennant is being formed with base near 3550 - 3650. Stay short(positional) and make money...

Market Update July 15, 2008

Two days back I asked people in my chat list to short nifty. We are still holding, I think we will soon reap the benefits of it. All global cues are bad today. Technically, we are forming a flag and pennant pattern on charts. I had posted about this in vfm couple of days back but did not get time to update my own blog :). Indicative target for this pattern is around 3600. I have marked the flags on the attached chart. Today we might possibly break the flag and head down. Support for NIFTY comes at 4030 and then 4000 levels. NIFTY is giving so many trading opportunities these days, I don't even feel like looking at other stocks :). Short NIFTY and enjoy!