NIFTY which opened gap up made a good recovery, but took strong resistance at 5025 levels to crash land again on close. Our running short trade was covered with a 67 point gain on spot values. The long trade turned into a whipsaw and reversed with a loss of 45 points loss. Hourly charts have closed with a short trade having good gains towards close.
What is in store? With most of the global peers mirroring each other and an intermediate bottom having been formed, there is a likely chance of range bound moves in the next session. With the value zone on the Daily charts at 5045 levels, there is a possibility to up again. We may see some more whipsaw trades before there is a good trade and that is the norm of trend following.
Having a good number of whipsaw trades and still being profitable is the secret of this game. Markets are not giving good trends at present, but hopes are not lost. Staying with the system with discipline will for sure be profitable in the long run.
Erratic moves in the RELIANCE group stocks was the reason for volatility in our market today. With RELIANCE, RELINFRA and RPOWER in the non-trending zone, they are not likely to give any good moves apart from coiling between averages. Keep off from these stocks as they would only generate whipsaw trades.
Broad based weakness persisted on almost all the sectors and Industries with miniscule gains in some Industries, while none are worth a note.
No comments:
Post a Comment