Nifty after 30th July 2007

If you happen to see that Friday first hour, the candle formed is a bullish candle and hence the market jumps up. Refer to the candle explanation at http://www.fxwords.com/b/bullish-dragonfly-doji-candlestick.html. It may also be noted that the Monday rise was well up to the 0.618 pullback of the Friday fall. A healthy sign for some more upside. Of course the market could not sustain and closed on Monday nearly at Friday levels.

What next is a matter of watching. The credit policy on Tuesday can be a cause to take the market either way. The government is worried about the foreign funds inflows more than tampering with the interest rates. What exactly happens is to be judged. A tightening to stop the inflows is also a bad omen to the market. Whatever happens, the banking stocks should be in the limelight and people can keep an eye on the banks to locate good moves up and also, once the peaks are reached to trade the fall even if it warrants you to go short over a period of more than a day.