30-3-2014 - NIFTY

            What a fantastic move. Since long we were continuously insisting on staying long with the trend of course with a strict Stop Loss and the Stop Loss never hit. The strategy worked well. All the stock specific recommendations also performed very well. Almost 95 % of the time, the targets were achieved successfully.

            Here we have a clear break out on the up side. ( refer the chart below for better understanding. ) As we all know that NIFTY is trading in an unchartered territory, so there is no sense in predicting the levels, rather. We must follow the trend, stay long, hold our longs in NIFTY and trail the Stop Loss is a right kind of strategy. Even though we must not predict the levels, we assume that a strong resistance zone will appear

between 6745 and 6770. So these 25 points’ zone is a small hurdle. And clearing this zone will boost the index on further higher levels. As mentioned in previous post / report that 6600 will be a trailing Stop Loss and a level and breach of that will make bulls start worrying.

            So we have to cut the longs below 6600 and step side or add more on the close above 6770 with a strict Stop Loss of 6700 for the fresh longs. ( 6600 for old longs. )