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.Good God!!! I think I should stop making prophetic statements. Never in my wildest of dreams did I imagine that the market would open on downward circuit.
The biggest question which would arise in a trader’s mind is, what direction is the market headed? I do not have a crystal ball to gaze into the future. But all I can do is to suggest how to trade this market.
Fact One: The long term trend is up.
Fact Two: The intermediate trend is up.
Fact Three: The short term trend is down.
I would choose 5100 as a benchmark for deciding the short term trend. If the Nifty violates 5100 on the downside, then the short term trend would be labelled as continuing down. If it violates 5596 on the upside, then we may label it as a reversal of the short term trend, and may buy on dips. If it does neither, and stays between 5100 and 5596, then we may label it as a sideways movement in a short term downtrend.
I would still not suggest shorts, but then I may be foolish. I would still go with the trends. I may suggest shorts only for short term traders with a strict intraday stop at 5600.
I would buy only after a confirmation of a bullish pattern. A confirmation would mean that the Nifty moves above 5600 and does not violate 5100. That is a 500 points range … agreed. But then, the Index does not move 10 percent everyday.
Plan your trade and trade happy.
2 comments:
Sirji this is the first time i think you have mentioned "Shorting" (below 5100).
also, within the range, is it advisable to buy on dips ? i take it that we shd....
5600 needs to be violated on closing basis or even intraday wud do ( its 1100 and it already has !)
reg
ketan
Haha, spoke too soon ! its 3.30 now !! i couldnt understand, but now i do...
so sad for bulls ! (or is it ??)
pl do suggest sirji, 1000 down on sensex and i am tempted to short !! haha
reg
ketan
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