NIFTY : 6012.1
Hi,
Readers,
As was advised in last
blog to play the volatility and do not take any positional call on the market
as the overall trend is down and market is moving higher on back of positive news.
Thus in these kind of
situations long positions are not justifies as even a single adverse news will
give sharp fall. The result was also evident on Friday on adverse news from
RBI. Also positional shorting was also not advised as it was mentioned that
there were no clear signs of making short position. So, in these kinds of days
the best thing one can do is to play volatility and book very small profits.
Good news whenever it
comes is always expected and market waits for it to come. But... But… bad news
always comes suddenly.
Result is in front of
you, rise was fast and the decline was also as sharp as the rise was.
Remember as part of
discipline one has to take positional call in the direction of the trend and
when one takes a contra trend trade(i.e. against the trend) look to book
profits at the earliest.
I had also mentioned
that despite this big up move trend of Nifty has not yet reversed,
and trends don’t reverse in abrupt fashion. Also, after 1000 points rally in Nifty do not expect the trend to reverse run through without making
pattern. Even if it wants to reverse, it will make some pattern and
consolidate.
Now What :-
Nifty on Friday has made bearish engulfing candlestick pattern. This week is an expiry week also, thus
expect volatile movements in Nifty. The Nifty chart is showing that it is willing to come to 5750-5800 levels over the period of time. Even if Nifty gives small upside movement its destination is 5750-5800. After coming to 5750-5800 Nifty will decide, whether it wants to spend some time their or take
a move (At that time the position shall be reviewed that what the charts are
indicating).
Trade accordingly.
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