Nifty after 31st July 2007

The fall from top 4647 to 4407 of 240 had formed an intermediate base of some kind .....called a support point or support level. If you see the earlier post the fibonacci levels given were well respected on Tuesday close. The market went up in the morning and then down and then went all the way up as if CRR hike meant nifty hike. Jokes apart, if you happen to have seen that if your longs were initiated at these base levels near 4407 or even late at 4440, the 0.236 level was well respected on Monday and another chance came again yesterday (that is Tuesday) at 4464. Since the market was rising the next level to easily go to was the 0.382 pullback of 4499 or logical 4500. This too came with pretty much ease. And then the 0.5 pullback too came in a hurry as market was not wanting to go down ....... a century and a triple century and an Indian Cricket Team Test win in England was the aim. Jokes apart, even this figure of 4527 too came.

The point to highlight is that once a base has been identified, the fibonacci levels generally are good targets, not that they work all the time. People do make mistakes of taking opposite calls in the middle of the move. From one level to the other ......Even I do make mistakes....I had those values with me but never bothered to stand by them and they worked work and I worked up a little loss.
What next has to be analyzed. The next 0.618 pullback level of 4556 can be the next target which is a level when market again goes into high gear aiming to go to the full pullback and beyond. And this has to be taken care of ......If this is reached, it is likely that we still go up. The fluctuations are being ignored. But if this level is not reached, we will definitely go down. People who read charts are blamed to say IF ........THEN........ELSE statements. Are they fools or they are fools ? Depends how you gauge them. The point is trying to be on the right direction most of the time.
The American markets have closed negative and the retail chaps are all out. The big fellas have all the guns with them so why not pump it higher and higher till they have achieved target to sell off. Please keep this in mind and play today (viz Wednesday).