These are my personal musings. These are not in any way meant to be trading advise. To view the full chart, right click and open in a new window.
A gap down opening is an ominous sign for the Nifty. If I was trading this market, I would keep yesterday’s low as my stop, if the Nifty closes below.
Yet, why is it that the market sentiment still remains buoyant? Very surprising? Not really. It all boils down to trading.
The results season is on and this volatility can be attributed to pure speculation. I had expected this phase of the market to bottom on Tuesday, and it still is possible. However, I would tend to draw my trading plan to limit losses to a manageable level.
The Bank Nifty had made a bullish formation on the intraday charts on Friday. Today that level has been broken, which tends to allow for some more weakness. The CNXIT did witness weakness, which mainly contributed to the weakness in the Nifty.
Therefore, as suggested earlier, we could see the trend for the Nifty could resume upwards from Tuesday. However, due to the volatility and news based trading, I could suggest very tight stop losses depending on the time frame of the trades.
3 comments:
SIRJI THIS MONTH WILL CLOSE BELOW 3940 - FOR SURE.
SO ANY RISE ABOVE IT SHOULD BE SHORTED. IS IT CORRECT ??
MOST LIKELY AROUND 3860 ?
REG
KETAN
pandyaketan,
I have repeatedly made clear that there is nothing sure about the market.
What is sure is that if our trading plan is faulty, we will lose money.
Dusant
VERY TRUE - BULLISH OR BEARISH, IF WE DONT MAKE MONEY THEN THE PLAN IS FAULTY !! so true !! and thats why we all love u !! haha !
Pearls of wisdom !!
reg
ketan
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