Nitin Damle asks:
Today morning I heard u on CNBC Awaz telling to buy Nifty near 5400
Sir, my reading was different I was thinking that short term trading indicators are pointing towards correction Nifty is not moving above 5450 and there is huge negative divergence on MACD & actully given a sell signal so as per my reading it was a sell with S/L 5450 I got confused hearing u please tell me what was your reading.
Nitin, lesson No 1. Do your own thing. TV cannot become a substitute for your own thinking & analysis.
On Awaaz, I said: Buy above 5450 OR on a dip near 5400. This was in response to a question on 'What should a trader do with the Nifty today?".
My own reading of the charts was also explained. I suggeted that there is limited upside as the markets are likely to see choppy conditions for the next few weeks.
Last Friday when the Nifty was at 5470, I said in the morning show with Udayan that I was no longer bullish since at 5470 the risk reward ratio for bulls was not favorable.
Now, for today's day trading call, buying on a dip seemed to be the least risky method. But, overall, I became 'not bullish' since Friday, but that does not mean that a down trend is coming! For me, a dip starts if the 5350 support is broken on a closing basis. For day trading, today did offer a short selling trade, but that was around 1:20 Pm when the Nifty started breaking down below the day's lows.