Nifty Blog by CA. Sachin Aggarwal

Dated :- 02.08. 2020                                 NIFTY SPOT : 11073.45

                                                                                                         

Hi Readers

It was mentioned to book full profits and step aside as Nifty was overbought and run through upside was not expected, at that time Nifty was at 11200.

Same happened Nifty came down after making high of 11341 and made a low of 11026 and closed at 11073.

Hope readers would have enjoyed it.

Now What :-

Now as was mentioned to look for selling below 11118 where bullishness will be put under test.

Now the strategy for the week is to keep holding the short position with the stop loss of 11220 closing basis or even if Nifty stay above it for some time during the day.

But frankly this time the sell trade now is not that comfortable as on today.

Because Nifty is at make or break level around 10950 to 11020. Nifty has tested 11026 for once on Friday.

Thus the way one should play it is that book some profits on Monday itself. So that your stop loss will be either reduced or negligible or at cost.

Because if the fall has to come it will come in next two - three days. Else just book out without waiting for stop loss. Because the rebound will be equally sharp, it at all it comes, and expected to be good one. Rather try to buy in such scenario of rebound.

Thus the strategy is to hold sell trade (part one only) initially but keep booking some profits in between and hold only maximum 50% of position so that the effective stop loss should be reduced to few points of cost or be careful of position size.

Trade accordingly.

Note - ALL THE LEVELS OF NIFTY ARE of SPOT ALWAYS.

-----------------------------------------