Thursday, 2 January 2014

Dated :- 02.01.2014 (THURSDAY)

                                                      NIFTY  Spot   6221.15
Hi,
Readers,

Nifty did exactly the same as was mentioned in my last blogs.

It was clearly mentioned to be cautious. It was also warned number of times in my recent blogs that crossing 6420 is not easy for Nifty.

There are many technical indicators which indicate that crossing 6420 is very difficult.

On Dec.31, 2013 when Nifty closed above 6300 it was mentioned that Nifty can try to touch 6370.  And look, Nifty went up today and managed to touch only 6360 and fell down from there.

I hope readers would have enjoyed the caution given by me in my earlier blogs.
Where it was mentioned numerous times that this is not the time to be extra bullish.

Thanks for the overwhelming response send by readers to me. I write the blog only on the basis of whatever I see on charts.

Now What :-
There was intraday sell today when professional traders should have taken sell position and should have booked part profits in that also.

See, Nifty has closed above 6200-6220 support level mentioned by me many times in my earlier blogs. Nifty closed exactly at 6221 giving respect to support levels.

Nifty will trade with further –ve bias below 6200 and breakdown of Nifty will come when it shall trade comprehensively below 6150. Same as was mentioned by me in my previous blogs.

Those who know and understand the technicals should also watch that Nifty has started becoming oversold and if it breaks support levels run through from here without pausing. Than it will make Nifty more or deeply oversold. And we all know that deeply oversold Nifty usually pause or give rebound. Thus be care full for position sizing while planning the trades and do keep booking profits. Because rebounds sometimes can turn into short covering.



No comments:

Post a Comment