mkt ahead...20th oct 2010...

much needed profit booking may have begun...more later...

evening update:

refer to the 20th sep 2010 technical outlook,"the upwardly sloping trend channel which the nifty was following for quite a while has a width of 660 points and the channel was broken on the upperside near 5600. so the tgt around 5600+660=6260."

accordingly, the nifty reached my above mentioned tgt 6260 and slightly more i.e 6284.10 and soon faced the profit booking and started its near term downtrend.


the nifty has closed below an imp 6050 lvl which was to be a tsl for short term positional long positions. therefore likelihood that in coming days there could be further fall with intermediate pullbacks/bounces.

it may also be good news that profit booking seems to be happening ahead of the big ipo's and oct being a caution month many times, which may give a good opportunity to the investors who were anxiously waiting on sidelines, if it slides further, to enter into buying stocks. seems that final intermediate to long term upward tgts may be much higher than the latest high if the result season also goes well. technically we can see some lvls but will not be appropriate to post now.

likelihood of an initial shallow correction upto 5800/5600(channel breakout lvl) cannot be ruled out. at any point the correction ends will be known and perhaps might be update here.

(read discl given above)