Dated :- 04. 01. 2015                                 NIFTY SPOT : 8395.45

Hi,

Readers,

Nifty moved out of the range of 8100 to 8300 as was mentioned in my previous blog and that too with a bang.

These range breakouts normally lead to short covering and also bullish positions are made by traders.

Now What :-

Nifty chart is showing that is has bullish bias. Book part profit here and balance should be carried forward with the trailing stop loss of 8300 i.e. of cost and co-incidentally that is the breakout point itself.

Utmost care is required in riding this upward movement of Nifty and one should not be complacent at all. Because Global indices are indicating that they may be getting ready to spoil the party.

I would also like to caution readers, that, Dow chart and S&P 500 charts are showing topping out signals and FTSE is making rounding top formation. Breakdown in all the above indexes has not yet come. If at all they (i.e Dow, FTSE & S&P500) or any among above, give breakdown, then, at this level for Nifty It may be difficult to outperform for too long and to continue its upward journey. If it happens then these Global indices may spoil the bullish sentiments in our markets.

Whether it happens or not Time will tell. And till then it is a caution to play the up move in Nifty with caution and with strict stop losses.