As mentioned, the 2 key stocks that held the 200 dma outperformed the index by a long way - Tata Steel and ICICI Bank.
It is amazing how, if one just follows charts, and keeps the 'noise' out, a completely different picture emerges. I have heard many are still going short or averaging earlier shorts, believing that this is just a pullback rally. So what is it is just a pullback rally!
A rally is a rally is a rally; it is no untouchable that one is not supposed to trade long in it.There will be enough signals when this uptrend ends, to sell longs and go short.
The long call at 4870, with a stop of just 40 points is 150 points ahead, and a reversal will also be spotted within 30-40 points from the top, if not earlier. The 2 key levels that all will be looking at now are 5060 - 80 and 5160 - 5180; however, there is another important level which will come into play tomorrow - no, it is NOT 5050! If Nifty manages to cross this level smoothly, the writing is on the wall, and Nifty will follow the levels posted 2 weeks back - yes, who says the trend changes every day?
The low on Nifty spot today needs to be keenly watched, and if bulls manage to hold this well, bears are in serious trouble in this 'pullback rally'. It is too early to talk about the importance of the low today, and it will explained at an opportune time.
Amongst the key stocks, the 'leader' of the Indian stock market is fast losing its credibility and it has to do something as early as tomorrow - readers will know which stock is being referred to; and a 3% rise is expected in this stock sooner rather than later.
So, ride the uptrend till it lasts and be ready to sell and go short.
You can get 'live' updates on
http://twitter.com/ap_pune or
http://twitter.com/TimetheMkt
A full day course is being planned - on the Science of Technical Analysis and the art of trading Nifty futures - in Pune; The tentative date is Saturday, 3rd April.
Those interested in more details can get in touch on the yahoo id timethemarket@ymail.com
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