What is market trying to say.....

Lets analyse the previous post first.....
I had said that RIL will lead the next rally. Well, definitely its taking its time and testing patience, but the possibility is very much on the cards. It has retraced 50% of its last upmove but still creating fears of going down. My previous support range was 1950-90 which has been broken as of now but lets not sell our holdings in RIL. One should rather wait and watch the the next move (one can also keep 1869 as the trailing support).....

Coming to Nifty, lets analyze the following chart.....

http://i441.photobucket.com/albums/qq134/Saptarshi_m/Nifty.jpg

See the red and blue parallel downward trending lines and also observe the diagonal (brown line)....When I gave the call for 4550 at 3900, this was the wave I was following....The Diagonal of the Downtrend.....Now that the time has extended and with that the diagonal has inclined upwards, Nifty is also moving along the diagonal. But the strength of the move has not diminished. The OBV (on balance volume) is inching upwards showing consolidation with accumulation.....

But the market is trying to show a different picture to market participants. It wants retailers to be out of it completely so that the flight can easily take off. At this higher price, Nifty will always show chances of going down but generelly it doesn't. As one say "Barking dogs seldom bite". Maybe our markets trying to confuse us as well. One thing for sure, there is no mid-term panic in the system. See the India VIX values. Does it show any fear in the medium term? The answer is NO......

So why are all people afraid to invest now? At least partially......Lets play the game.....

Happy trading....