Dated :- 25.08.2013 (SUNDAY)

                                                    NIFTY  :   5471.75

Hi,

Readers,

Nifty has done exactly what was mentioned in my last blog.

It was clearly mentioned that the level for nifty on down side was 5300 and Nifty made low of 5254 twice but closed at 5302 giving respect to the levels mentioned in my last blog.

It was also advised to book profits on short position and step aside. And the same happened. Nifty gave rebound from the levels mentioned in my blog.

It was also clearly mentioned that IT stocks will face bears music and it happened. IT stocks gave sharp downslide of around 5% to 8% after my last blog.

Bank Nifty was also predicted in my last blog, wherein it was clearly mentioned that Bank Nifty is not willing to go too much below 9100 without Rebound. Look, the same happened, it rebounded sharply to 9766 level once and came back from there to 9005 and then again gave rebound from there to close at 9470.

I hope readers would have enjoyed great profits.

Now What :-

Nifty chart is showing reversal pattern but, the point is that overall trend is still down. Thus, this reversal pattern has to prove itself and give breakout for traders to take aggressive buy trade.  See, bear market rallies are normally very sharp and very luring. One has to be very tactical and nimble footed while playing those rebounds. Those rebounds should be played at initial stage of rebound and small profits should be booked from them. Like the trade mentioned in my last blog about Bank Nifty.

At this point no clear trade is there in Nifty.

So, it is advised to keep enjoying the profits and sit aside and play the volatility on intraday basis or very short term basis with tight stop losses.

Coming week is expiry week also, thus expect volatile moves.