Monday, May 7, 2012

Nifty 5000

Over the past two weeks, I have been suggesting a downside target of 5000 in the Nifty. This is not rocket science, technical traders should have identified bearish patterns, trading range breakdowns and come to similar targets.

Given the bearish mood in international markets, together with Indications by the SGX Nifty, a decline of 80 points from Friday's close of 5080 is likely, bringing the Nifty to 5000.

The first time we touched 5000 in the Nifty was in September 2007. Time flies, but the Market did not.

I expect some support to come in at 5000 levels. Then, the market has to take a call on the next move, it could easily be towards 4800 or so.

80% of our short positions were closed around Nifty futures at 5100. The balance 20% are likely to be closed some time today. When we have range expansion (unusually large moves in our favor), as traders, we take profits and wait for new patterns.

2 comments:

AK said...

thanks for sharing sir...

is it by any chance possible for you to share your nifty positions(entry/exit levels with sl) here on blog..so we readers also can trade along with u..

ajith2020 said...

hi sir,
can u please suggest some good books or website to learn about intraday trading for a beginner.

ajith