Short trade on the Nifty that was initiated on Thursday at
5450 for a target between 5325-5375 has almost reached the target levels. Next
session could probably cover up the trade with an above 2 times reward to risk
ratio in this trade. The NH-NL is flashing stronger sell signals, which
indicates there are more bearish levels yet to be reached. 5350 being a support
zone, bounce is likely here before further weakness could set in. While the
patterns on the daily charts are somewhat on a flat movement, there are chances
for a bounce off into bullish territory. For this to happen, some stronger
stocks in the Nifty should gain strength, which is not visible at the moment.
For those who traded short it was a good trade, now we wait
for the next opportunity, not on the nifty, but on some stocks in the Pharma
and FMCG segment along with cements. Though the Index has been week, one of the
super strong stocks HINDUNILVR continues its relentless bullish move. The long
trade in progress has locked in 69 points in profit so far, we should take note
that this trade opened with a risk of 28 points including commissions.
Such good trades show up often on the charts, patience and
regular homework with discipline will pop up these trades at the right moment.
Happy trading.
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