Nifty futures continued its downtrend and it hit our downside target of 5240. As mentioned in the previous post base metals could not hold onto to the support levels and that led to the downfall in the second half of the day. World markets are also in a corrective mode and it weakens the trend in the coming days. As a trader in nifty futures i would have booked at least 50% of my entire short positions at 5240-5250 levels. It tried to give a surprise up move on the upside but could not reach above our resistance levels of 5440. As of now we could not see any reversal patterns in nifty and lets wait for an accumulation pattern in nifty before getting in as a buyer. One important development that happened in today's trade was Bank nifty trading below the important support zone.Let's wait and watch whether it could hold on to the support zone or a crack towards 9600 zone. Dollar/Inr is on a rise and it would be heading towards 52 levels soon. We should watch these levels of dollar and base metals for the first reversal of the corrective move in nifty. As a trader i would not be initiating news short positions but would hold onto some of my previous short positions. It was a range break out below 5330 and as mentioned if it is a range break out it would be a positional trade. Now we need to watch out for the support levels and no buying is advised until we get a base formation pattern. Always remember that the first move on the up move would be a short covering rally and nifty charts are telling us we need to wait for a more convincing move to create long positions. We could see some break down in our leading stocks like ICICI bank and Jindal steel , thus lets wait for a good consolidation and then start buying.
Lets keep the range of 5180-5330.
Lets keep the range of 5180-5330.
