as written in so many posts nifty finally reached almost near our much expected 5350-5400 lvl. there was no support by mutual funds or fiis near the 5700-5800 where some people might have wrongly advised others to invest thus making them further lose money in the 300-400 points downslide.
so will the 5350-5400 will be the bottom? right now on daily charts it is oversold and trading below 200dsma. it is important to understand that at the moment it is only an crucial 'speculated support', any such bottom can be confirmed only sometimes later when some upward bias sets up for short term. it is most important also that 4750-4800 is below which the long term charts(and hence the very long term investors) turn bearish. so as long as that is held our long term tgts, though delayed, would be in place. positive news is the nifty50 share earnings have been continuously upgraded till now. and the nifty50 is mid-way near 20 times earnings.
nifty trading strategy:
intraday players can keep sl 5400 spot and trade long for 5465/5538, if 5400 breaks short for 5388/5350.
existing positional short nifty players can keep a sl of 5562 spot and ride some more downside if nifty slips below 5400, reverse position to go long above 5562 closing basis above which trend can change to short term bullish with short term tgt 5800.
as given before also 5850-5900 remains a strong resistance to the upside.
so will the 5350-5400 will be the bottom? right now on daily charts it is oversold and trading below 200dsma. it is important to understand that at the moment it is only an crucial 'speculated support', any such bottom can be confirmed only sometimes later when some upward bias sets up for short term. it is most important also that 4750-4800 is below which the long term charts(and hence the very long term investors) turn bearish. so as long as that is held our long term tgts, though delayed, would be in place. positive news is the nifty50 share earnings have been continuously upgraded till now. and the nifty50 is mid-way near 20 times earnings.
nifty trading strategy:
intraday players can keep sl 5400 spot and trade long for 5465/5538, if 5400 breaks short for 5388/5350.
existing positional short nifty players can keep a sl of 5562 spot and ride some more downside if nifty slips below 5400, reverse position to go long above 5562 closing basis above which trend can change to short term bullish with short term tgt 5800.
as given before also 5850-5900 remains a strong resistance to the upside.
