I will be on Bloomberg-Utv on Friday, Oct 8, at 3 PM. Do check in if you can.
The Nifty took a dip today, breaking down from a minor support level that came at 6150. While an intraday trade taken after the break was profitable, the question is: was this just a one day wonder or is there a trend behind this break?
Markets do not give direct answers to our questions. We have to make our trading plans, then stick to it. If the market wishes, we make money, otherwise we go through minor discomforts (minor, because we have our money management routines).
If a swing trader is short or wishes to take a short position, the stop is somewhere around 6185 - the mid point of the trading range. So with limited risk, the trader can go with market flow. A more conservative trader can wait for break of the second level of support which is at 6100.
Was it possible to go long at the close today, assuming that today's dip ws just a one day dip? Yes, it was with a stop below 6100.
Here we have seen different ways of taking the trade on the same day. All of the traders could make money if they have discipline.