A small trading range between 4650 and 4710 may have finally broken down yesterday after one big false move. While the Nifty closed at 4625, well below the 4650 support, today's premarket suggests that the decline is likely to continue.
While targets for the downside are difficult to estimate, suppport based on earlier price bars, comes initially at 4570. We should not get attached to one single number, rather think of this support as a zone. The next area of support is 4500 to 4480.
But, how do you trade? The day trader should take both sides of the trend, up and down. The short term trend is down, therefore, it is possible to go short.
The Position trader should not buy the dips until and unless markets finally find a low and stabilise.
If you have existing long positions, then, follow the stop losses strictly.