NIFTY has closed at
7643.05. Bounce continued and all the readers knew this. We have indicated this
on 14th July, itself that we are in a support zone and we might see
a dead cat bounce. We have stated also that this might be a process of making
lower top. And NIFTY has cleared the interim resistance zone between 7590 and
7620 successfully. As stated in yesterday’s post, clearing 7620 level will open
another door for 100 odd points rally. And there is again another last but
stiff resistance zone is waiting between
7730 and 7760. A close above this
level for 2 / 3 days will give us enough confirmation to close shorts and start
thinking about making new longs in NIFTY at least. Till then every rise towards
this resistance zone must be utilized for creating shorts in NIFTY, of course
with a strict Stop Loss of 7800 on closing basis. To be in a safer boat and minimize
the risk, one can buy at the money puts instead of shorting NIFTY and that too
with a small quantity with Stop Loss mentioned above.
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