Review: Since my last blog Nifty has been moving in a narrow range of 3350-3510, correction really never came as anticipated based on technical laws. Markets surprise often by not following conventional beliefs and we get humbled by markets telling us it will do what it wants to do.Its closing value on the upper range in 5-6trading sessions with large volumes showed the strength and current momentum,finally making a breakout northwards on 4th May ,2009

This is a classic case of defying healthy growth principles which leads to smiles on the face of speculators/short term investors but hypothesis of correction can not be denied, may it have been postponed.... but it must take place....it may be not getting the stimulus right now to trigger the correction ....this delay in correction increases risk therefore calls for much stricter trading displine of keeping appropreate stop loss(This is science+Art perfected over a period of time) closer to current running values.

Any breakout or correction needs trigger to change the direction of the market with enough strength to cause it effectively. we got for now breakout trigger instead of much needed correction trigger ......we dont forget the left baggage.....its getting even heavier.

what I m doing in current circumtrances??

First and the foremost thing I am searching my ground in these bullish times where i will rest my foot in case of correction fall takes place.....if this momentum has yet to continue ,resistance faced just before in few trading sessions namely 3475-3510 nifty value must work as support for the future trading...THATS MY STOP LOSS NOW FOR TRADING POSITIONS.For long term investments my support is shifted to 3330-3350 raising it from previous levels of 3150,and few trading sessions will confirm that. I will be riding the bull run but with much more caution. Unexpected election results(unstable Govt getting hold like third front ) can cause the damage.

There is really no target except round figure of nifty 4000 meaning rise likely of another 12% from here(3600) This is for long term investments,where i didnt exit according to my strategy of being bullish for 8-12weeks since second half of march 2009. I will try identify my long term targets generally they are 3-4 times my positional trading target of 10%. If i achieve the targets i dont shift my targets except in extraordinary situations. The real win is after i have booked my profits forgeting what more i could have made by shifting my targets (Shifting targets is a risky bad habbit like over- drinking sitting with friends-- the limits get extended without a sensible consideration)

I would like to look for some mid cap and small cap gems those which have not gained for any reason and might participate in the rally but the trades will be for short term of 6-8weeks only more importantly gains target of 8-10%.

Entry futher for long term will be made only when a correction has taken place, position held can be played until either our targets are met or a major correction is insight.

More another time

Happy stock investing

SAM

Disclaimers: All those which have been mentioned in my earlier blogs and repeated many times.