After seeing a small recovery yesterday on Dow Jones, and the charts it seems like a small recovery will happen, which again will not be very strong as the global cues are still weak and until unless we get some good rally of 2-3days on Dow Jones we cannot hope for any type of big recovery on Nifty as well. Nifty has its last support at 4400 which if broken will take Nifty to -400 points to 4000 in coming days, but some old theories fall right at such times “When you hear bearish news from everywhere start buying, and when you hear bullish news then start selling/exiting from the market” and I have seen this happening right at so many times that I never forget it but without technicals I don’t even trade in the market.

To come to the conclusion, I advise cautiousness for short sellers as recovery is not far, I would be the first person to buy DLF if it hits 525. For medium to long term investors Powergrid and NTPC will be a jackpot at current levels if they buy now and hold for 1yr time horizon. Those who like short selling in intra day can short sell DLF only if it breaks 588 for target of 550, stop loss 595.

By Mohit Thapar- Bookprofit.com

About Bookprofit:

I am into technical analysis since 2001, and have been managing clients since 2003. Currently managing my own website at www.bookprofit.com and my popular blog at http://beautifulcharts.blogspot.com I am also associated with sify.com and manage their online subscribers and have been giving my analysis for intraday trading since 2005 for sify.com We have been conducting technical analysis workshops as well in Delhi as we are based in Delhi, and also recently started online workshops for remote clients, which is very successful and appreciated by overseas traders.

Technical analysis is an art of interpretation which everyone cannot master, only those can be expert in it who have patience and diligence and craving for perfection. A technical analyst is not god, he/she is a human being who can be wrong at times, as the job of a technical analyst is to interpret sentiments of traders which are available in the form of charts on the computer, and sentiments/charts are never wrong, the interpretation of the analyst can be wrong.

I can be reached at mohit.thapar@gmail.com for any queries.

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