- There are sometimes when you do not have a clear
view or analysis on Nifty or many indices. This seems to be one of those times
for him.
We saw a long term trendline breakdown but we ended
up making a low of 5100 and reversing in no time and went to make new highs for
the year at 6340. Question is which part of the move is false 5100 or 6340.
- Recently we touched the higher band of a 5 year
range and got into overbought levels. ( we did take a short at 6350 and Bank
Nifty puts but booked out pretty early at 6200 ). Also good part here is in the
last 3 weeks the view of midcaps rocking has helped in a big way.
- Now in last 1 week we did a downtick for 7-8
sessions non stop getting a bit oversold. We did take a call option in Nifty
which seems to be playing out well but will keep the trailing stops.
- But all through this there does not seem to be a
clear direction to Nifty according to him. The conclusions might be different
for others.
- In the same period what we have seen is a superb
move in a lot of broader markets and the last 1 month has been really good with
a lot of 15-40% jumping trades.
Now in simple terms the last low for Nifty was at
5700 and high at 6340. We are now standing at 6000-6100 giving almost a similar
distance to both zones.
The call to take now is whether we break this range
or be stuck in it for some time. But a risk reward trade does not seem to be
coming where one can take a big call.
At the same time we
have seen a good turnaround in a lot of midcaps
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