When I started this blog, I thought I would also share regular trading opportunities that come up on Indian and Australian stock markets.

I plan to do that and it’s not that there are not many opportunities coming up. However, in past 5-6 weeks, the market sentiment has been weak and only good Short Trading opportunities have come up. There were couple of good Buy opportunities, but if the general overall trend of the market is weak, one should avoid taking long trades in such markets.

Based on the response that I have received from regular visitors to this blog, I understand that (barring a couple of them) all of them deal only in the Cash market. In India, we can not trade short in cash market (as far as I know, unless there is any recent change). Hence, I have restricted my posts only to market/index outlook rather than specific stocks.

As mentioned in a post 2 days ago, NIFTY is expected to test 4800 level by 7th June. Looking at the global markets, this level may even be tested today, though I am not sure, but the possibility can not be ruled out.

In broader words or sense, it is likely to remain sideways as of now and keep range bound between 4800 to 5000 till 7th June. It is expected to make a LOW on 7th June and unless the trend turns UP, it is expected trade in this range.

I am sharing a weekly chart of NIFTY here which clearly shows the trend as down. Don’t worry if you don’t understand or get the chart. Just note the circles which show lower LOW and lower TOP/HIGH marked by arrows.

http://ping.fm/mOZIl

So, my advice is to keep away from buying. My forecast may be wrong but our first objective is to survive. We don’t drive or jump a red signal. And need to be careful on Yellow signal. But, we will move forward only when the signal turns green. And that’s not the case as of now, as far as the technical charts suggest.

Wait and watch for 7th June.