NIFTY is consistently making a lower
low since last three days after making a life time high of 6799.65 on 3rd
April, 2014. This pattern is not very comforting for bulls. But looking at the
mood of Indian market and the trend, this correction might not last long as
what we assume. But as we have mentioned in earlier posts, assumptions and
predictions might lead us to a biased trading which is very dangerous for the
health of our capital.
So by analyzing it technically, we can assume that
yesterday’s
low is very crucial for bulls. For very short term traders, all the
long positions must be squared off if NIFTY breaks 6696 decisively. There is a
fair chance that NIFTY might go further down if yesterday’s low is broken. The levels
are already discussed in our previous post / reports that 6700 is a Stop Loss
for fresh longs and for those who are holding longs since lower levels, 6600 is
the last Stop Loss. Below 6600 we might see a sudden crack of 100 / 200 points
very fast. So if NIFTY does not break the support of 6696 and sustains above
these levels, one can buy around these levels and keep a strict Stop Loss of
6696 and stay long for short profit. So with all these key levels please position
yourself accordingly.
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