Interim Update Bottom Line:
Nifty has failed to show any recovery signs throughout the day. The down move of around 180 points close was previously seen in 2011. The current move has opened a number of plausible scenarios from here on. It is better to wait for clarity before concluding if today’s is just a panic selloff and bounce back is possible or start of another leg on downside has started. Avoid creating any fresh positions and long positions can keep 5480 as stop. Also it is better to be in Options rather than Futures to avoid the event risk which we have seen before on Monday’s known as Black Monday. Also do not be too stringent with that level since many important supports have already broken! Also risk reward does not warrant fresh shorts here.
In short, wait for few more days of price action to devise a trading strategy!
For more information on daily report subscription visit
http://www.wavesstrategy.com/index.php/store.html
Nifty has failed to show any recovery signs throughout the day. The down move of around 180 points close was previously seen in 2011. The current move has opened a number of plausible scenarios from here on. It is better to wait for clarity before concluding if today’s is just a panic selloff and bounce back is possible or start of another leg on downside has started. Avoid creating any fresh positions and long positions can keep 5480 as stop. Also it is better to be in Options rather than Futures to avoid the event risk which we have seen before on Monday’s known as Black Monday. Also do not be too stringent with that level since many important supports have already broken! Also risk reward does not warrant fresh shorts here.
In short, wait for few more days of price action to devise a trading strategy!
For more information on daily report subscription visit
http://www.wavesstrategy.com/index.php/store.html
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