After being overtly bullish for the last few days, I am cautiously bullish now.
The market is fast approaching towards being overbought on hourly charts, and hence the cautiousness.
The first hurdle for Nifty spot is 4110 - 4120, and the support level is 3990 - 4020 (it should not go below this level this week, for this bullishness to continue).
It is recommended to remain long, and also hedge the position by buying Nifty puts once Nifty spot approaches 4190 - 4220.
The puts can be squared off in loss once Nifty crosses and closes above 4225 Nifty spot, beyond which 4365 - 4370 looks possible on Nifty spot..
Till then enjoy the see-saw ride.
'See-saw' reminds me of the relation between Nifty and the MCX Crude in Rupees.
Nifty spot high on 8th January 2008 was 6357, which will be a high for the Nifty for months to come (years ?? !!) and the high of crude oil on MCX last week was 6358 on 15th July 2008 for months to come (years ?? !!).
Are the bulls and bears in the stock market and commodities markets playing a game of see-saw like the kids do in a park?
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