NIFTY STILL NOT OUT OF THE WOODS

Although the rally on NIFTY of around 200 points on Friday did a lot of good to the shaken sentiments of the investors, technically speaking we are not out of the woods just yet. The charts show that we are still trading in the negative territory and the trend is still negative in the near term... . So what does this mean, should one aggressively go out there and take long positions...in my humble opinion definitely not...though many many people would be tempted to do so...I think till the time we cross 4300 and stay there decisively till such time the clouds of negativity would not have blown over our markets...I think its best to sit out of these pullbacks for some time...as these tend to be very short. Same is the case when we are in a secular bull market, and there are corrections ...people tend to jump in at the first occassion only to get trapped. The very very short term horizon (1-2 days) is still positive, but how far will it carry the markets is yet to be known...also another factor is the expiry on Thursday...Usually series that take a negative or positive turn during the middle of the series, end on the same note...hence going by that indicator it is best to wait and watch and take positions only when the markets give you a confirmed signal