Wednesday, October 5, 2011

Afternoon review

The Nifty remains in a downtrend - this much is obvious. For the position trader, there is only one trade - look to hold on to short positions or sell on rallies. For the swing trader, the Nifty is providing some sense of receiving support around 4750. If this support holds, an upswing is possible. The first sign of support will come if nifty trades above today's high. This can be possible only on Friday, since. tomorrow is a holiday.

Any move below 4750 will be considered as a continuation of the downmove, therefore, should be sold into.

2 comments:

rohit said...

But what indication should we take from this? I thought the way market collapsed in the last 2 days in the afternoon, we will surely make new lows. Because, first we went to around 5020 on expiry, and came down, then we stayed above 4900 for 2 days, and again broke 4880, then yesterday we touched 4880 and collapsed, and today we touched 4840, which was yesterdays support and again collapsed, but seeing world mkts it seems, we may again go up. what should we do? for how long can this range last?? There is so much uncertainty and the way mkts move 2-3 % everyday, taking any position is becoming confusing, and if one keeps strict stoplosses, only thing which happens is they get triggered and we end up losing money, i think this must have happened with many traders in the last 3 months.

rohit said...

everything is so confusing? we are at 4750 but futures are at a premium, but if we are hitting bottom, there should be capitulation and there should be some discount, can the mkts rally to 5400 from here? who knows? if we bounce sharply from here and make new highs in the next 3-6 months then was this just a bull mkt correction of 30 % which was prolonged time wise? Volatile times GOD!!!! no doubt the vix is rising but giving no indication, when will volatality subside????