10-7-2014 - NIFTY

            NIFTY has closed today at 7576.65. Today was a budget day. Net net the budget was good from the people’s point of view, as what we felt from the initial reviews on various TV channels. The fine print is yet to out and analyzed thoroughly. We must not make any hasty decisions. We are very close to the strong support zone of 7530 to 7470. Today NIFTY made a low of 7486.05. Now from here onwards one will have to be extra cautious in our trade. there are two possibilities as below :

1.       NIFTY will bounce from this support zone and goes up again. ( Chances are not very bright after seeing the move from last 4 days. )

2.      NIFTY will break this support zone close below and starts going down.

Tomorrow is the last day of the week and if tomorrow NIFTY closes below 7530, one must close all the longs including old longs and sit aside. A close below 7470 might generate the short signal also but that is not confirmed yet and that signal is only for those who trade professionally and sit in front of the screen. So for now there is no fresh trade in NIFTY and stock as well. One will have to watch the levels mentioned above and that will be it for the time being, rather I can say, for this week.