Dated :- 18.03.2014 (Tuesday)

                                                         NIFTY  Spot :   6516.65

Hi,

Readers,

I was out of town due to some sudden & urgent work and came back today only.

Thus could not update the blog in between.

Last week it was mentioned that Nifty will be inclined to correct and that correction will decide the fate of Nifty. Nifty corrected 100 points and made a low of 6432.

Now What :-

Nifty’s currently is not giving reasonable correction.

And is stuck in a range between 6430 to 6560.

Nifty has also started making small broadening pattern on daily charts. Which indicates that no large move on upside will come in Nifty without good correction.

These factors together with some other technical reasons indicate that next correction whenever it will come can be a good one.

Now the question shall be why not to short Nifty here?

Answer to that is Nifty’s overall trend and movement is still up till now. These are only advance indications which we are getting through our analysis.

Than what to do?

Do not be over enthusiastic in buying Nifty. Be cautious.

Lot of opportunities will come in days ahead.

Stay out of Nifty and be stock specific.

Nifty will be volatile in coming days and will be vulnerable to sharp corrections. Be cautious.

However if Nifty manages to close above 6570 than 6530 shall become pivot point. Meaning thereby that till Nifty is above 6530 do not short Nifty. And correction shall come in Nifty only if it goes and stays below 6530.

Professional traders shall get small trading opportunities in both sides. Take those small moves and book small profits intraday.

This Blog is updated again to correct date. As in the earlier blog date was wrongly typed as 09.03.2014. But it is 18.03.2014 today.