Alarm bell has ringed loud today. Nearest support levels breached on closing. NIFTY is well into the value zone. Tomorrow's closing will decide the immediate trend of the market. A weaker closed near today's level will initiate short trades on the daily charts. If there is a pullback from here, it would be a lucrative buy on the hourly charts for a target of 5370 levels.
For now the long trades on the daily charts shall tighten stop at 5235 levels. If Nifty trades below stop, exit only long trades, do not initiate shorts tomorrow. As the daily chart is yet to retrace any bearish divergence from the current move, there can be a pull back possibility even in the intraday.
Hourly trades already in short can hold on for further gains or till there is a reversal signal. It's a wait and watch tomorrow. Thread carefully, bear moves can be rampant. NIFTY has recorded 50% jump in volumes today, a falling day with big volumes indicate further weakness. At least a lower low before any pull back.
When markets turn weak, it is a buying opportunity on the strongest stocks. We have already written on several stocks which are very strong at the movement. Keep a close watch on them to trade long on upticks.
From our recommendations, BHARTI and NFL have signaled long exit. Exit long trades below today's low. FORTIS goes out of buy signal. All other stocks have their stops intact.
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