I hope readers have been listening to me on ET Now, every morning. I have sufficient time to explain the Nifty trend, and this has been fairly consistent. Last week, I had advised taking of partial profits on Nifty, first at 6080 and then at 6150. I had suggested that 6130 should be used as a stop loss for any long positions.
On Friday morning, I explained that technicals have deterioriated sharply. The Nifty has failed to cross its previous highs, thus setting up a three drives pattern - in which three moves to the top or bottom fail. I ahd given a level of 6045 in Nifty Futures below which we become short sellers. I had also warned against entering mid caps and small caps.
Once 5940 was taken out, the intermediate trend turned down. Now, we are in this down trend, so we have to go with the flow.
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