NIFTY has given a close at 7778.10. As per the
recommendation given in the previous post, we have exited the long positions in
NIFTY. In the chart below, one can clearly see the break down in the price. The
RSI indicator is also showing the weakness and unable to go above the trend
line and sustain the level. So overall, the trend is not strong at this point
in time and one can go short and initiate a short position in NIFTY. The down
targets can be set at
7720 and 7620 / 30. A strict Stop Loss must be maintained
at 7830. To be on the safer boat, we recommend to buy “ At The Money “ PUTS or
start with a small quantity and then add more on the next target. Please note
that as of now, we do not expect this down fall to continue more than two /
three days maximum. This view can be changed and other strategies will be
discussed only if NIFTY closes below our second target of 7620. Till then, keep
these levels handy and trade safely.
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