After trying to sustain into a range, going against global markets, NIFTY has gone in sync with the Global Trend. Across the board weakness has pulled the index down close to 2%, the chart patterns have rightly set in for shorts. Stop loss for short trades is again far away compared to its reward. On breach of 5190, support is likely at 5090.
The India story is far brighter for the global markets to make a dent. Any immediate measure to curb the financial crisis of Greece and Poland will have a knee jerk reaction on our index. It will start its march up once again. The market is non-trending, not the right market for trend traders.
Switch over to oscillators from trending indicators, if you plan to make some money on the Index trades. If not sitting on the sidelines is the best advice. Else we have to be prepared to give back some of the fantastic gains made in the past one year to test the markets for winning trades.
Change to stock trades instead of trading on the Index. There are some very strong stocks even at this moment and these broad based weakness is the buying opportunity there. Fold your sleeves, hook up your shopping bag and start hunting.
Happy trading.
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