December 2012

Trading levels 10th / 14th December 2012



I was away for one week in Muscat. On 27th November we had a huge up-move which was followed up by two more big up-days. We crossed the previous high of 5815 with utmost ease. As I had said earlier, that was a signal to open fresh longs on NIFTY constituents as well as high beta counters. Last week we have consolidated a bit more but the long counters have given anywhere between 5 to 10 % returns in those 5 days.

NOW THE TIME HAS COME AGAIN TO TURN CAUTIOUS as all the immediate triggers have played out and we will be again moving in tandem with world markets.

So protect your longs with close stop-losses and let them run if they continue to move upwards.

Market is looking strong on monthly charts but there could be weakness emerging on weekly charts. In that situation, it is prudent to wait on sidelines as going short or long may not give a significant gain while a sudden turn around may catch you on the wrong foot.

MONTHLY LEVELS FOR COMMODITIES ...

MONTHLY LEVELS FOR WORLD INDICES ...