mkt ahead...23rd july 2010...

so as per view, the medium term uptrend continues after taking support near our tsl of 5200!

there was a -ve div on the eod charts indicating some sort of potential near to short term warning to the upward rally. but with yesterday's movement, it has come down a bit.

nifty has also done the much needed breakout above our 5400 lvl and taken out its two year high. it can therefore proceed to 5550(near to short term tgt) kind of lvls once the small resistance near 5467 is taken out.

by p/e analysis i had already mentioned that anything above 5500, nifty enters an expensive valuation zone of 5550-5730. and above 5750 etc it enters the euphoria zone.

but that itself is not a reason for a big sell-off in the mkt, but it would be a time for taking some profits off the table.



as shown on weekly chart, the nifty is moving in a rising trend channel with upper and lower limits currently placed at or above 5530(resistance) and 4872 or above(support) respectively.

the tsl (or more appropriately tpbl, let me coin the term here, tpbl!, the trailing/partial profit booking lvl) for the short to medium term positional traders can now be raised to 5350 from previously 5200 lvl and sl to 5200 from the previously about 5100 lvl. all as per eod closing basis.

i do hope the tgts, sl, tsl and overall mkt view for positional traders/investors is clear to the blog reader from the above paragraphs.