You must read previous articles and watch the given chart carefully to
understand this article completely.
13 April 2017: -
On 12 April 2017: FII Net Sold – 580.70 INR Crs: DII Net Bought – INR – 701.12 Crs
Well, Nifty is moving around 9200 and I took some trade on index on
short side. This is definitely after a long time and with my calculated risk. Trade
should have been taken after 80% confirmation from technical indicators side
but i took trade even after it was not that strong sell.
Clear way, my stop loss for short is the all-time high. What drive me
to take this risk? I am already quoting from past many days that weakness will
come first on mid cap and small cap stocks. Money used to move out from weaker
or small stocks first and then it move from heavy weight.
For today’s session, I am expecting market to open on negative note.
If it sustains below 9140 then a short signal may emerge which can be strong
enough to make a forward trade for next week. This is still more than 60 points
away from current levels. Remember, market will be on long holiday from
tomorrow. On higher side it will face resistance at 9240 and then at 9274.
9274 is going to be a very stiff resistance. Once it crosses above
9274 then I can expect a move for 9500 levels. Do we have enough fuel for this
this kind of fresh up move?
Caution note is clear – first one has to watch for weakness on small
cap and mid cap indices. Before top, there may be the days where mid cap and
small cap indices will be negative and bluechip index will maintain flat to
positive note. I will look on small cap and mid cap index to compare relative
under performance.
Strategy for Nifty April future
– I have added short on 9240 kind of levels and my stop loss is at 9300 and now
I am not going to touch any trade for index. Well, above is my trade and my
decision and many may not agree with it. One has fair point. I took a risk. Unless
it closes below 9160 I will be on fair amount of risk but I deal based on
risk-reward ratio. Let us see.
BANK NIFTY April future – Not
need to chance analysis. Levels and view remains same. BANK NIFTY should not be
touched now as long as it is trading below 21700 levels. Chances are higher
that I will not prefer to trade index. It has crucial threshold at 21000 levels
which is still nearly 2% away. It is suggesting that market is trading with
unfavourable risk – reward ratio. Can it sustain up? I doubt.
