Dated :- 04.08.2013 (SUNDAY)

                                                                                NIFTY  :   5677.90

Hi,

Readers,

Nifty has done exactly what was mentioned in my last blog. Wherein it was clearly mentioned that as and when Nifty breaks 5850 go short and more downside levels are coming. It was also mentioned that below 5850 the technical pattern of Nifty will be negatively dented and bears will start smelling the blood.

After breaking 5850 Nifty was in complete bear grip and the fall was relentless wherein Nifty fell 200 points within couple of days and made a low of 5649 on Friday ( 2^nd August).

Even good positive announcements from government could not provide support to Nifty because there was clear indication on charts that the Nifty will come down. It is all technical analysis.

Now what Next:-

Overall trend of Nifty is still down and at present one should not be bullish. 

But, since the short position is giving around 200 points in no time and good support of Nifty is coming ahead at 5600-5625 levels. It is advised to book part profit here and wait for selling again on rise. Wise man always protects his profits.

Actual Stop loss of this Nifty short position is at around 5925 levels on closing basis. But after making good profit in couple of days and having grip on the short position it is not wise to have such a long stop loss. Thus one should look for second best stop loss which should be decent one. Second good stop loss is at 5858 on closing basis which is also incidentally the entry point of the short position.

Thus it is advised to keep stop loss for balance short position at 5858 at closing basis and ride the trend.

Enjoy the profits.