As I wait for my CNBC interview to begin, here are some thoughts on the markets.
At 4200 in the Nifty, there is considerable support. That support showed up on Thursday and Friday. There is a buying opportunity for swing traders with a stop below 4200. If the Nifty moves below 4200 (does not have to close below it) exit all long positions.
Once you take the view that the uptrend resumes, you shouldbe looking to buy on dips. We have to remember that this is a mature uptrend. It started from 2500 and touched 4700 in just three months. Therefore, the possibility of a failure are high. Breaking below the 4200 level defines a failed rally for me.