Wednesday

NIFTY Making New 2009 Highs

Post a Comment September 9, 2009 – 2:20 am |   | Permalink |  Print This Post |

We remain bearish on India despite the generally bullish sentiment on most technical blogs. The NIFTY’s rise above 4800 made headlines - it is possible for the momentum to carry it up further - as all eyes are set on the 5000 mark. We remain very cautious of the rally - our style of trading is rather macro and longer term than most, holding on to our positions overnight with full exposure to the crazy volatile markets. We try to hedge when possible, and to try not to pick the turning point but the zone.

Gold and silver remain on an uptrend. We hate buying anything at the peak, so our participation of the rally is currently limited to Troy Resources (TRY.AX). If anything we are looking to short if Silver rises by another $1-2 rapidly. Looking at the silver chart, this is the 4th successive peak recently, each higher than the previous by $1.50. Last spike peaked at $16 - which gives us a rough target of $17.50. Go Silver. That said, trading against fundamentals is against our rule - as we lose conviction easily holding on to a losing position and are more likely to take a loss (in contrast to our stubborness in longing Natural Gas against the bearish tide).