Dated :- 07. 09. 2014

                                                                    NIFTY SPOT : 8086.85

  

Hi,

Readers,

Nifty is in euphoria mood, but remember the volumes are low. It made a high of 8140 but could not take out 8148 in spite of excessive euphoria, as 8148 is very tough level to breach. Nifty made a high of 8140 last week thus I expect that readers of the blog would be short in Nifty. Nifty came down 80 points from there and made a low of 8050 and closed at 8086.85. I have been mentioning about the level of 8148 in my earlier blogs.

Since Nifty is near to the level from where correction is expected to start, what one should do here, Simple, short Nifty gradually in calculated manner. Chart patterns are depicting that 8148 is still alive and Nifty is expected to top near that. Only caveat today is, that, since Nifty is in euphoria mood it can do some silly things and may try to take a false move to breach 8148 for once. Although Nifty is not expected to make that false move, but even if makes it, Do not get worried. Rather show courage and short Nifty. Profit will wait to greet you in coming days. Stop loss for shorting Nifty is 8297 initially and will be trailed gradually.

Let me add here standard saying that shorting is a cup of tea of professional traders or who have brave hearts. Others please do not even try doing it.

Now the time has come when the start of correction is inevitable. I am writing a big statement, as predicting the start of correction for a euphoric market which is on fire is not easy. Technical analysts normally avoid predicting it. Remember I have been sticking to the statement that Nifty is expected to make intermediate top at around 8148 level.

Let me raise some red flags along with the technical’s.

This move of Nifty is on low volumes.

Highest open interest at 8000 put at very start of series, it shows that bulls are becoming complacent. And this level of 8000 will break within September expiry itself.

Clear divergence in stocks some are flying high and some are crashing down.

Enjoy the trade and trade accordingly. Short as per your risk appetite with the stop loss.