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The Line of Control

August 5, 2009

As of 5th August 2009, 10:02am the NIFTY is trading as in the chart shown. Reading the tape, I see a strength, though a tempered one, not a euphoria, but a measured doubtful one. And any specualtor worth his salt will tell you, doubt is the fuel of a rally. Professionals love when crowd is in doubt. And I think this is one of those times. People are still trying to short 4703, and I dont know why it might not work this time.

Any successful breach today will give a huge trading rally of atleast 300 points on the upside. A huge trading move to say the least.

The Line

The Line

Good Luck and Trade Smart!

Soham Das

P.S: The resistance holds till its broken.

Update: 10:30am I am out of my longs and I am just watching from the sidelines

Update 06Aug 2009: I will keep it short and simple. The way its rejecting 4703 price band, I absolutely don’t think that its going to break the upper cap 4703-4750 in the next 4-5 months. This period is going to frustrate people around, frustrate the retailers and at the last stages will frustrate the traders as well. Myverdict: Range bound from 4703-4200 (+/-1 % on either side)

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