Scaling heights with just few lines...!

This could be the most simplest of all intraday charts with just a few lines.

Is this rise and upper circuit that we have seen healthy?

The issue is that yesterday's combined volume was just around 3000 crores and it is quite clear almost no new player participated in the rally yesterday. The feeling of missing the bus and the euphoria and hype created by the media is just pushing everyone to somehow get into this rally by all means. Those who missed getting in yesterday are more than willing to do so today, but the question is 'are they realizing that they are buying it at 20 to 25% higher levels than what is seen on friday?'

The only thing that can sustain this for a day or two is the short covering, either voluntary or forced which has not yet happened yesterday. Once all these shorts are covered, NIFTY will be at a height from where even rising an inch above would be a herculean task and again will collapse on its own weight. Retails who enter it at higher levels will be again caught on the wrong foot and might have to wait for months to again see those levels. Chasing the markets is always dangerous and as told yesterday it certainly is a 'wait and watch' situation allowing the dust to settle before initiating the next move.

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Happy Trading
www.tripleint.com