Nifty futures did give a closing around our lower band of 5250 and the short term down trend is intact. In a larger frame work i would still go with an accumulation pattern rather than negative trading set up. Thus wait for markets to settle down let traders start building up long positions. As i said in the previous post the only one good thing that we could do is to square off the short positions around 5200-5250 and wait for some clarity regarding the trend. It could move to the much talked about support zone of 5150 levels but as smart traders one should take out some profits close to the immediate support zones as mentioned in yesterday's post.
The down fall in commodities market especially in copper makes the picture a little bit dangerous in the shorter frame work. Volatility data shows some short build up in today's session instead of long unwinding and be careful of sharp whipsaws on both sides. As an investor i would like to put some money in Reliance industries at this point of time and as i said in the previous week's post .The accumulation process could range from 630-730.If i am a trader i would take off some profits in my short positions and wait for an entry point for a short covering rally. 5400 levels could be considered as the reversal on the upside and till those levels are taken out i would not be a positional buyer. Lets keep a range of 5190 - 5330.
The down fall in commodities market especially in copper makes the picture a little bit dangerous in the shorter frame work. Volatility data shows some short build up in today's session instead of long unwinding and be careful of sharp whipsaws on both sides. As an investor i would like to put some money in Reliance industries at this point of time and as i said in the previous week's post .The accumulation process could range from 630-730.If i am a trader i would take off some profits in my short positions and wait for an entry point for a short covering rally. 5400 levels could be considered as the reversal on the upside and till those levels are taken out i would not be a positional buyer. Lets keep a range of 5190 - 5330.
