NIFTY has closed at 6547.50. it has
made a life time high of 6602.80. as we have mentioned earlier, till the time
it does not break and close below 6480, there is no worry for bulls in short
term. Since last 6 days NIFTY is trading in a range of 100 points. By rules of
technical analysis and trend, we are bound to follow the uptrend. There is no
way, we can short the NIFTY at all, but the important thing is today’s
movement.
After making a life time high and closing in a
red, down bar, is of course not a good signal
for bulls. This move is
suggesting us about the exertion on the higher level. This is the time to get
extremely cautious on every long including NIFTY and stocks. We might not dare
to go short but at least we have to take care of each and every long by
protecting it with a strict Stop Loss. And new high will again make a higher
high.
The levels are still the same that breach of
6480 on closing basis, we will step aside and exit of longs in NIFTY and breach
of 6400 on closing basis, we may initiate shorts, but that is something we will
discuss later and post the levels to trade the short side.
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