The Nifty continued moving down, as the intermediate trend asserted itself. The big push is usually in the direction of the intermediate trend, which as we know, happens to be down.
Day Trades
With a back to back decline lasting two days, the Index is probably ripe for an up move. Day Traders may like to look at the possibility of a buy on Thursday (This is written at 7:17 PM, without the benefit of knowing what the U.S. markets will do).
Swing Trades
These may last for a few hours to a couple of days. Here, traders may like to avoid a long position, waiting for a rally to go short. If the market does show signs of a rally, existing short positions should be covered (for a profit).
Position Trades
These trades last for a few days to a few weeks. The trader should go with the Intermediate trend, which is down. Look for rallies, then go short by selling futures, buying a put or selling a call. Only professional traders should trade in futures & options.
2 comments:
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SIR,
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