NIFTY at 7708 :where to from here ?

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Most of the times : we justify a position by virtue of news flow , but initiate the position looking at the price action .

Lets clear “The Thought Process”:

  1. We don’t know what events come up when
  2. We can bet on data , but lets keep that separate from the buy or sell decision
  3. The only news flow that hits everyone by surprise is NATURAL DISASTERS , citerus paribus

Its good to know whats happening in the world and that we have an opinion on it , but barring point 3 , lets make decisions based on process actions alone . The only decisions before we  initiate a position should be :

  1. Strategy
  2. Stop Loss
  3. Take Profit

The NIFTY is at a crucial juncture : No one Really Knows whether the upmove from 7520 will take us to 7950 & above or the market will kiss 7780 and revert to 7320.

My thoughts below:

nifty at close

nifty at close 2

 

 

 

 

But the market may move by a large amount Intraday. To play the move two strategies can be adopted. Intraday :

  1. Short in the range 7735- 7745 with stops at 7785. Target would chase 7610. Dont forget to reverse at close keeping the lines in mind.
  2. Long in the 7680 – 7725 zone with  Stops at 7675  . Target would chase 7950 .
    I will rather go with the second .

Happy Trading.


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