Downsizing channel on BankNifty

BankNifty had been the outperformer in the last rally since 2011 but now it seems it would be an equal partner for underperformer in the coming future. Overall sentiments in the markets have turned bearish after the sell of on Friday. Even the global markets had seen sell off on late Friday giving a sign of weak opening tomorrow. If we look at the long term chart of BankNifty, than we had seen a rally from 9940 to almost 21500 which hasnt corrected yet enough to move further and my analysis suggest correct has begun. But as we have more traders so i had to watch the chart closes from Daily period. As we could notice in the chart, index was trading in the downside channel and it has almost breached on Friday. As we expect a gap down tomorrow, this channel is also breached and we could see downsizing channels on BankNifty daily chart which support my weaknening markets. 18346 is the 100 day average which has crossed 200 day average at 18542 for bearish crossover giving a selling idea for the medium. The crossover has been confirmed as the index is trading below the crossover and both the moving averages. As the expiry week kicks off tomorrow, i am expecting a short covering this week but use this as a opportunity to square of your longs and short new trades for next expiry. Stop loss would come at 18850 which is the resistance line of the channel. GST bill and Rate cut are the only trigger which could give some chance of reversal but it has very nuch thin chance to cross 18800 in near future. So overall the index seems to be weak in medium term. Sell rise is what i recommend 

#214 Nifty Update: Some rains on the charts

Deficit monsoon has been a matter of worry for investor but some relief has been seen in the last week in some parts of India. On nifty too we saw some rain of relief for the bulls in the last few sessions. On the 14th July i did post our strategy which was going long above 7625  and we have seen a weekly close above that same level giving a confirmation for the power in hands of bulls. Nifty has closed above all the short term moving averages on Daily charts. On the weekly charts we had got a weak closing last week with Nifty closing below 5 Weekly SMA but that proved to be false as Nifty has closed back above that average. Indicators on Daily are signaling buy on the index but weekly indicators are still flat. As you could notice in the adjoining daily chart of Index, Nifty has turned around from the strong support line which had been a resistance line in the move before. It turned around with a "morning star" candlestick pattern. Fundamentally, its quarterly result season and its the first result for this financial year and for the Modi led government. Infosys has given flat results as per expectations but other 2 big giants Reliance and TCS has beaten street estimates. As per reports reliance has seen highest ever FII investment in the stock of almost 20%. This is the good sign of bulls to be in power for longer term. On the economy front, we have seen some highest IIP numbers of 4.7% which is a positive sign for the turnaround. Technically the Nifty is still in a long term bull trend

Our strategy: We recommend to HOLD long initiated at 7625 as per our last post. Tgts on upside are 7850/8031 sl:7456

#213 Nifty Update: Dark Cloud cover at the wrong place

Its already a late July and still no sign of heavy rains anywhere in India. Dark cloud cover has arrived but on Nifty and not on the cities. Nifty has dragged almost 400 points from the high last week. Railway Budget and General Budget were the two big events last week. Both were delivered in the faith of long term growth but still common man takes it hard to digest a expensive growth. IIP which was announced after the market hours on Friday which came at almost 18 months high at 4.7%. All the major events now have been declared and now markets will work on sentiments and Quarterly results. Technically market is gonna be crucial for this 15 days now. Daily chart has already weakened and we expect a 50-80 points pull back while weekly chart has also gone in the court of bears. But Monthly charts been still positive we have some hopes. 7300 is strong support on the monthly chart but if thats broken you could see some deep correction of 10%. Nifty could take support at 50 Day SMA at 7386. On our last Post we mentioned to Hold long and our 1st tgt 7688 had been achieved after which trailing SL of 7538 had hit down.

Our strategy: Wait and Watch. Short below 7300 and Go long above 7625

#211 Nifty Update: Waiting list for traders at 7150 to 7500

Dream rally its nearing to its end. Modi has sworn in as Prime minster so has been profit sworn into portfolios of investors. Now its time to start liquidating 20-30% portfolio and wait back for interesting levels on the downside to buy back the portfolio. Today Modi team was announced officially and they have started working on the first day. Last rally from 5933 was in expectation of Modi winning the battle and as event has been completed i feel it is even discounted in the rally. Now its time to book some profit. Since the rally from 6820, Nifty has not breached 5 Day Exponential till yesterday, but now it was breached twice. That is the sign of weakness.!!!! Indicators on the daily chart have turned bearish and i have noticed a wedge like formation on the top which could be breached  tomorrow on the downside. Even 5 EMA is around the same level as downside trendline of wedge at 7309 which is hammering the level in trade. On the other side marked Horizontal line at 7257 has acted as a strong pivot point around which nifty has toggled in last few sessions. Last two sessions low has been around the same level creating a strong base to trigger sell on breach of it. We even have a gap downside which could be filled up at 6871. Weekly charts are somewhat indecisive to take either side while MoM we are seeing a strong upside. Though daily chart showing some weakness we would wait and watch for strong levels of 7150-7500 to be breached to trade on respective side.

Our recommendation: We recommend to book profit on all longs which we initiated around 6800. We would recommend risky traders to short positional below 7257 or buy above 7488 whichever is first. While safe traders are recommended to short below 7150 and go long above 7500. On the dowside we have targes of 6870 and 6500  and on the upside 7680/8031 Consider closing of Nifty to act upon the levels  mentioned

*disclaimer: Trade on my idea at your risk and after due diligence. Refer to disclaimer page on website www.chartechnician.com for more. All the words used are just related to article and doesnt intend to hurt anyone personally. 

#209 Nifty Update: Bear's Break Fail

Modi wave continues since we mentioned in the last post. Last phase of Voting was today and voters have turned out in huge numbers. All the states witnessed % rise in total voters over 2009 which is a good sign of indian getting aware of their biggest responsibility. What i personally like about Modi is his personality, strong and Firm towards his work and philosophy. Coming back to economy, we are still in not in a perfect stage. CPI was announced today which is at 3 months high at 8.59% while IIP is still contracting at -0.1% vs 1.1% a year ago. We need some reforms in policies to spur up industrial production not merely NDA win. Quarterly results of corporate are improving which is a good sign of some bottoming out of markets. Last two sessions have been like a dream to bull players. Nifty has moved almost 350 points in 2 sessions and expect some more in next 4 sessions. Technically Nifty has breached all resistance level and all the breaks applied by bears have failed to stop bulls wave. As i have marked on the graph, nifty has just came out of a consolidation pattern "Expanding Triangle" which suggest a upmove which has already taken a start up since last two session. Looking at the indicators, all are still nowhere near to high point which is strongly supporting our bull biased view.

Our Strategy: We stick to our previous post upside view and tgts of 7200/7480 with extended long term target 8031. with trailing SL at 6650 on weekly closing basis

#207 Nifty Update: Ab ki Baar, Nifty ko Maar

Indian Cricket stadium has always been electrifying for IPL but this time whatsapp and social media are more electrifying with youth taking interest in Election starting tomorrow. All the media apps, atleast on my phone, are flooded with Ab Ki baar, Modi sarkar one liners and Funny quotes. But on markets for next few weeks it could be dangerous slides that is why 'Ab ki Baar, Nifty Ko Maar'. We have seen none stop electrifying run from 5933 to 6776 but now its time for some profit booking. In our last post i mentioned that 6780 is strong resistance and Nifty on Thursday resisted at 6777 which was just at the stop we mentioned. What made markets weak was bank license announcement which was just out of the box what traders expected. Two Finance company IDFC and Bandhan Finance were lucky enough to get the license. Many rejected applicants were dissappointed with the decision and why not as they were more financial sound than the approved applicants. This could bring some profit booking in the Finance space which had moved in anticipation of getting banking license. On global front, US payroll is increasing at a steady pace which could lead in cutting more stimulus as market seems to have been improving. Russia may enter recession if capital outflow continues due to political tension over Crimea. Coming back to Technicals, Nifty daily charts suggest a highly overbough markets. As we all could notice on the charts above it was in upward channel which could now be breached on Monday to give us steep downfall. It has closed below 5 day moving average for the first time in recent time to show biasness towards downside. Monday opening could hour would give a clear idea. If the opening of NIfty is below 6705 on Monday and if it even trades below that level for 5 points too than downside breached is confirmed. 

Our Recommended Strategy: We recommend traders to go short on nifty CMP: 6694 with tgts of 6586/6453/6350 SL: 6810 (closing basis)

Note: all levels are of Cash Nifty and we would recommend to book 20% profit at 6586 50% at 6453, 30% at 6350 to all are traders. Please rely on our recommendation after consulting your advisor and at your risk

#206 Nifty Update: Cruze Control your Equity investments

Oh Ghosh!! Traders would have piled off 50 points from the gain as we recommended to go short and stop loss triggered. Sorry for that but market is are strong uptrend momentum now. That blow off over 6550 was just untouchable for new trades. We are expecting same momentum to continue for 100 more points upto the range of  6770-6820. Looking at monthly chart and weekly chart this Nifty has no hiccups to downside any more. May be small jerk could come down in first 2 weeks of April which could be taken as buying opportunity rather than considering it a shorting opportunity. Bank Policy on 1st April is the next key even for domestic but i guess traders are not considering a important one this time around. Status Quo is what we expect in the policy as it election environment and RBI governor wont take any risk that could show any biasness to either political party. Markets are purely trending on political mood rather than any economic factor or fundamental factor. Indicators on daily charts are supporting move upto 6780 in near term where as on weekly and monthly chart we can expect a minimum move of 7300/7800/8031 in this calendar year. Before cruzing above 6800+ , we may expect a correctiong upto 6490 and 6260 which could be taken as long term investment opportunity rather than a shorting opportunity. We are bias on Upside on each dip.

Our Nifty Levels: R-6780-6830
                           S-6570,6450,6260

#205 Nifty Update: Flight Missing to 7300

Most searched or read news last week would be abt MH370 missing! It is sad that whole world couldnt track a missing plane. With the all latest technology combined together we cannot find a plane then whats the use of such technology? Same is somewhat with Indian Financial markets. All were ready for take off to 7300 but that group of Bull is missing on the bourse to take the flight ahead. We might see a U turn back to 6250 from here. All the news have been factored and now we dont have any even domestically upto 1st April which is RBI Policy. I personally not expecting any rate cut as that my give some favoring to Congress before election. So may be RBI governor play safe until one more policy. Technically Nifty has given some weakness confirmation as per our technical Indicators combination today. Now we may some profit booking from tomorrow which could even a sharp one to 6250. If you are my old blog follower than i had posted on 25th Feb 2013 on my post http://chartechnician.blogspot.in/2013/02/321-go.html that target on Nifty is 6550 and it has been achieved last week. Market is chewing around 6550 and now i am expecting it so slide dwn for a correction which could be as worse as 6082 that too in no time. RSI has turned negative and Nifty has closed below 5 day average after long time giving a short term weakness sign. MACD was already resisting to move ahead. Volumes have dried up and already IT sector had given warning sign of market turning around for the short term. Defensive stock such as HindUnilever and Asian paints were already showing positive sign which is bearish for stock Market. So we are a bit bearish for short term traders


Our recommendation: We recommend short term traders to SHORT Nifty CMP: 6483 with tgts of 6430/6340/6260 SL: 6550 (Closing basis)

Note: All levels on Nifty are of cash levels. All the words or phrase used are just for post purpose. We are not against or in favor of anything. Any resembelence to true event is not true. Avoid speculation from our post. It is purely related to Nifty Equity Market context

#204 Nifty Update: "Total Siyappa" by "Bull Gang" to win "Queens" mark by"300" points

This Friday was full of Entertainment for Indians, release of 4 awaited movies as i have mentioned in my tag line and Secondly they all combined, gives the Nifty rally same effect. "Gulabgang" (bulls here) with a mark of "300" (314 points range on nify last week) have won over bears to achieve 'Queen" label (Life tym high on Nifty) with 'Total Siyappa" (Total madness buying on the D-Street). A guy like me who is Film-o-Holic and Nifty Crazy would be on High after witnessing this friday. All the 4 films and Nifty have been hit till now. What we witnessed on the D-Street on Friday was total madness. Stocks which made the gang on D-street were two hot chameli's of 90's L&t and Reliance (as Madhuri and Juhi of Film Industry). We have seen some FII buying lat week in the stock but they bought more in Debt segment. FII figure aproxx was Rs. 3000cr net in equity against Rs.10000cr net in debt. So one thing is clear than even developed economies trust our debt products more than equity until the election results. As we have seen a tremendous breakout performance by bulls as marked in the chart, it thus proves technically that they are overall in control to take nifty ahead in long term. CAD figures were announced last week which has narrowed down sharply which is taken positively for the markets. GDP has been better last month YoY basis which gives compliment to market recovery signs. Now as code of conduct has been applied no new policies would be announced by congress but new banking licenses would be announced by EC soon while RBI policy is due this month end. We except a rate cut. Now all the demons for bear markets are left behind fundamentally. Technically, Nifty is in the third wave degree which is considered to be the steep rally. We might see some correction on daily charts which would be much deep though. A consolidated week may be expected next week.

Our Recommendation: We recommend safe traders to wait for buying level around 6150-6300 levels with than tgt of 7300. We would post soon when there is a clear buying opportunity. Safe traders DONT short

*Disclaimer: All analysis is subject to market risk. Study market carefully before investing on our advise. all the words mentioned are used with reference to market and for the posting reference only. 

#203 Nifty Update: Bears playing cricket while Bulls trending Nifty

Recent Asia series have been a disappoint for Indian cricket fans while at the same time Nifty has given some marvelous returns to traders. We have shown under-performance at cricketing field and also at the equity field but we have recently covered some respect on Nifty while we need to do alot at the cricket field. Our Final tgt 6310 on Nifty has been achieved against the Long call initated at 6000 on 4th Feb. Russia's invade plan of ukraine had got hell out of the world but than it was relief when Russia called back their troops. GDP has been  better off for us and also trade deficit has narrowed compared to GDP which is a good factor to keep in watch for our economy recovery. Election date has been declared today which will start from 7th April and result will be declared on 16th May. technically all this factors have been taken positively by markets and we expect positive momentum to continue. RSI and MACD are in 3rd gear and are ready to gain full momentum while on the 4th gear before they resist at 5th. Index is trading comfortably above all the long term moving averages. As per Elliot wave 6398 is the first stop were Nifty could stop. We expect a consolidation or correction from the levels of 6400.

Our recommendation: Risk takers hold long with the tgt of 6398 and trailing sl 6266 while Safe traders could wait for some confirmed signal before taking fresh trade.

#196 Nifty Update: TICKET CONFIRMED

Bears have got a confirmed ticket to 5700-5900 which they booked last week wtih "Bearish Engulfing" travellers co. As you all could see "Rectangle" marked on top which suggest a perfect Bearish engulfing which is even confirmed with a lower low candle last week. As i said now bears have confirmed ticket but there is always 1% chance that bears wont travel i.e., there is always a chance of other side on markets. Infosys came up with better than estimate results and also a good guidance but it couldnt hold Nifty on higher levels. IIP shrank to 2.1% in November with 6th consecutive fall. So one thing is clear that our industrial economy hasnt picked up as markets expected and we may see some disappointing results this season. Technically, indiactors have turned weak on weekly chart joining bears to downfall. Since last 4 trading session nifty has been trading below 50 SMA which is at 6193. It has been acting as strong closing resistance level for the index. Long term investors start arranging cash to buy equity soon in coming months

Our Strategy: We are intact with our tgts and Short call as per our last NIFTY update.

#195 Nifty update: "Double Toppings on Nifty"

We all get excited when we get double toppings on Icecream or Pizza but i guess after todays close bulls wont be happy with the ''Double topping of Bearish Engulfing pattern on Nifty's Weekly chart". On other side Bears would be happy of the toppings. Now time will say who can digest this double topping..Bears or Bulls...Volumes on Nifty had dried up as Americans where on Christmas and New year celebration holiday. Yesterday we saw a basket selling and people had two reasons in mind 1) Rumors that Manmohan Singh would resign today (but he didnt) 2) People in Europe and America were booking profit after High NAV recorded on Financial Book Closure on 31st dec. Whichever reason you choose technical had indicated on 13th Dec Weekly closing and we did post on Blog to be short. Bond Purchase has decreased by $10 Billion/month which could also squeeze out  some liquidity gradually from market over some time. High Inflation is persisting in India which could trigger a rate hike in next RBI policy. On other hand Auto Sales have decreased for major companies in Dec which may be due to Inauspicious days as per Hindu belief. IIP are still pitched at lower levels which is not cheering for our economy. Earning season is about to commence and we expect intact growth and not much of flourished profits as our rupee had been stable around 62 which wouldnt have bought much profits for IT and Pharma sector which are dependent on foreign income. So we expect some profit bookings by short term traders on Nifty but we cant measure the extent of profit booking on downside i.e., it could be deep or even consolidation. Only good thing going around in Indian economy is FDI reforms. FDI in railway could be a surprise for markets and good for Indian railways. Parliament even approved some of the investment such as TESCO and vodafone 100% hike in Indian unit. Linking some inter market analysis, Gold chart is showing some bullishness which is a sign of downside in equity though not directly correlated in short term but it could trigger some bearishness on stocks. Coming to technicals, if we consider a bull wave to end at 6415, than we can see some extreme downside as we mentioned on last nifty update post. But for short term we have again got a chance to Sell nifty with some stop loss. Nifty is taking strong support at 50 SMA at 6193 on daily chart. RSI has turned negative. So now it seems Daily chart is also supporting negative biasness seen at weekly chart since 13th dec.

Long Term Traders Strategy: We are intact with Short call initiated on last post with tgt of 5970/5750 and SL 6415

Short term Traders straegy: We recommend to go Short (CMP 6211) tgts 6072/5970/5895 SL: 6360


*Note all levels on nifty are Cash levels and trade at ur risk with careful study. We might have recommended this strategy to our clients and we dont have any personal position. My analysis is biased to technical analysis.

#192 Nifty update: Smell of Rotten Stocks

After a long break when i look at the charts, i am smelling some rotten stocks which are over ripped and could throw away investors profit if not got away from it at right time. On my last post was long with small stop loss at 6030 which is been triggered. Now charts seems losing bulls momentum and bear might take control over it next month. I would recommend to exit 30% of the longs which i had intimated long back for portfolio at around 5400-5600 levels. Fundamentals aren't much at a peak stage which could drive stocks more crazy on upside in short term. Looking at US bond markets. Yield on treasury is increasing and we could see a tapering soon which could have a negative impact on our markets as money would be drove out of our stocks to some extent. Secondly, December is always taken as profit booking month for FII as they have their financial year ending. So making some bet on FII inflow i am negative for near term. On other side we had seen mixed bag numbers for our companies and i am sure investor would surely wait for next round of earnings before betting for long term on our companies. Technically, a monthly chart i am seeing a strong retracement which could stretch down upto 5400 but dont expect a straight line fall unless some news from political front. Indicators are weakning all time frames

Our Strategy: We recommend to Short NIFTY (CMP:6057) with tgts of 5900/5720 SL:6140 (Closing basis).For safe traders or portfolio hedgers buy 5900 (dec) PUT nr to 39.10
We recommend to keep SL after expiry as tomorrow we could see a volatile session. all are cash levels

#190 Nifty Update: Nifty Salutes Sachin

Just one word which was lingering around the lips of everyone, atleast in India was 'Sachin. Sachin, Sachin!!! Today was the day where everyone saluted Little Master Sachin Tendulkar for his last appearance in International cricket so did Nifty saluted him with a grand opening after 7 consecutive negative sessions. Nifty played a unbeaten 100* in first hour if its play but than ultimately lost some ground as i guess traders where buzzy watching sachin at Wankhde  rather Nifty at CNBC ;) hahahaha!! Anyways, today a important WPI was announced but it was as expected by polls at 7% which didnt made sentiments negative. The backbone of todays rally on Nifty was Banknifty which cheered speech of RBi governor last eve promising some steps to cool off rupee without increasing rate in near term. On other side result of TataSteel were announced yesterday after hours which were turning numbers for the companies. Coming to technical, in our last post we mentioned 6080 level to be support level and it was breached so swiftly on monday. We mentioned to WAIT and WATCH for confirmation and today we have got some signs that could give a clear picture of near future. As you all can see the squared zone it is a 'morning Star ' pattern of Candlestick but though not a perfect one. It does have some significance. Now on monday if we some good opening session than we could see a short recovering rally. But we have a strong resistance levels at 6098/6160. Nifty is taking strong support at 50 EMA around 6000 level. 

Our strategy: Square off all Shorts at 6098 and go Long ONLY above 6160.More downside on cards only if it closes below 6018 on Monday

#186 Nifty Update: Diwali Rocket Touched 6300ft mark

Investors rocket expires at the highest point in October at 6300 which was not expected by the street but we mentioned in our Update #184 that we expect expiry 6200 and we got lil more on that. There was not much fundamental reason to drive nifty but it was pure technicial support and short recovering which took Nifty near to life time high. Technicals are yet suggesting a good diwali ahead for the investors but its just we should have courage to book profit and liquid portfolio at the right time than. 6380-6500 is the range where you should book profits on your longs. Monthly chart is ofcourse signalling a strong bull but a internal correction could expected in next two expiry though we cant be sure of time scale. next 200 points rally would be backed by Walls of Nifty such as Reliance, Ongc, SBIN, AxisBank and TataSteel  to mention few.We dont recommend to short at 6380-6500 as we will wait for some confirmation before doing so. Technically as you could notice a support line of previous channel is acting as a strong resistance line today but is expected to break through before diwali. Nifty is still take strong support of 5EMA which should be considered as a trailing SL to our longs

Our recommendation: We HOLD on our longs with intact tgts of 6375/6500 with trailing SL revised at 6200(Closing basis)

#182 Nifty Update: A bearish Engulfing after a Doji

A rewind button has been pressed on Nifty today after 2 days of pause. But today i feel that more weakness has been smelt around the charts. Firstly, Nifty resisted around the same levels for 3 consecutive sessions. Secondly, it gave a super slide in intraday making indicators turning in favor of bears. Thirdly, the channel which we mentioned since last 2 updates had been breached on lower side in intra-day and closed exactly at the verge. On the downside we have a tiny gap unfilled at 6034 which is also coinciding with a another support level making it a strong tgt to be achieved on the downside. Indicators have shown some sign to move downside but a confirmation is required tomorrow from them. Trading and close below 6186 tomorrow is consider to be weak

Our Strategy: Risk traders are SHORT as we initiated during market hours yesterday while a trailing SL for safe traders at 6167 has been hit for long positions. So we are Status Quo for near term on selling side while safe traders its NO Trade zone.  SL to shorts are at 6220

#179 Nifty Update: Mixed bag fundamentals but strong technicals

Around 2 weeks ago we gave of tgts 6150 on Nifty in the update #175. We have achieved all the tgts on intraday basis but we still of the idea that we will get a strong close above 6150 soon. Inflation of our country has been rising but on other hand this result earning season has been good so far. With Infosys,Reliance, HDFCBANK, TCS and HCL Tech delivering above estimation result we can expect others to perform as well. US Senate has just passed budget before few minutes to avoid debt default which is of a great benefit for us indirectly. Tapering in US will be delayed and liquidity would stay with us.  CAD has seen some improvement which is also to cheer for us. Technically we are close to over bought position on daily chart but still we can see a long upside on Weekly and monthly chart suggesting a every dip as a buying opportunity. Our strategy is to HOLD long on Nifty  with tgts of 6220  6050 is important support for next 2-3 sessions which could be trailing SL. Currently downside is capped at 5900 which could be consider as buying opportunity if we see that levels first. 

#174 Nifty Update: head scratching for Traders

Nifty has been in the profit booking mode as we expected in our post #172 Update. Our 1st tgt on downside was 5810 and it has been almost achieved with a low of 5811 on Nifty index. Markets had been pretty range bound which has head scratching for traders. Now the tgt is 5677 but looking at the hourly chart we may see some short covering next week and that may be the end of downside correction. We expect a positive close on Monday which is a important close as its Monthly closing on the chart. We recommend to close shorts on Monday and wait for some confirmation to go long. 

#1 Cotton Seed Cake Update (Cocudakl)

Cotton Seed Cake (Cocudakl) December expiry is trading at a string support line which has been tested twice before in last 3 years. With Some simple logic it is trading in a upside channel as you could notice in the attached graph. Currenctly it is at the downside line or you may say at the best possible price to enter. Indicators on daily charts are totally oversold and its trading below all the short term averages. For Short Term traders its clear buy at CMP of 1449 tgts 1463/1488/1513 with sl of 1428 where as for Long term investors also its a buy but with larger SL of 1414  as the weekly charts havent been strong bullers yet. For trading tips on commodities follow us at @chartechnician on twitter and Facebook page Chartechnician 

#171 Nifty Update: Nifty was Drunk

Nifty had a great party and was drunk completely today. My tgt was 6150 on Nifty and it was almost achieved with high of 6142. A day before yesterday i did mention to go long on Nifty and now we are dicey from here. Technically we are expecting a small correction but other side it has chances to move up. RBI policy tomorrow and expecting no rate cut is adding more biasness to profit booking. We may Nifty to take support arround 5840.  Today around 3pm we did post to hedge longs with 6000 PE and we guess you did it and if u missed, we recommend to do it at the first tomorrow. Weekly and Monthly chart are suggesting a close above 6100 this month but Hourly and Daily chart are expecting a profit booking soon. Indicators are near to overbought zone and Index is comfortably above short term averages. A profit booking could take index back to averages around 5840

Strategy: HOLD our initiated long on Index and Also Hold 6000 PUT. Square of Nifty at 6000 on Downside and book profit on PUT at 5840. On upisde its party for us!!

Disclaimer: I may have personal position in index and above mentioned stocks. Views and News mentioned above may have Errors and omissions. My views are biased more towards technical analysis. Please read and study the market carefully before investing on my idea. For any suggestion contact me on my email. Some words mentioned in article don’t mean their actual meaning. They are correlated for market.