The Nifty did display a bit of melt down
in the previous session which was quite in expected lines, though the intensity
of carnage was more than expected. A bit of consolidation is in order after the
meltdown settles. If the support of 7580 does not hold today then we are headed
for a few days of weak sessions with Nifty gravitating towards 7382. However, the Nifty might as well bounce back
today. In any case the session is expected to be choppy on the basis of the
technical charts and analysis. We therefore advise the followers of this blog
to stay away from the market today and at best square off whatever short positions
they are carrying as and when the opportunity arises. For the return of the
bulls the Nifty will have to trade above the 7695 mark with good volumes.
Intra-day traders may go long if the Nifty
trades above 7695 mark with stop loss at 7775 and book profit at 7727. Otherwise
they may ride the short positions they made in the precious session i.e. if
they had followed our advice to go short.
The short-term traders who as per our
advice in the previous posts have bought the Nifty puts may square off the
Nifty 7700 and 7800 puts of July series as and when the opportunity comes.
Mid-term investors may wait and watch.
(Feel
free to write to us for our free advice regarding the stocks which you
already hold in your portfolio. Kindly send the quantity and price at which you
bought them. Much better, subscribe by email. It is free. And, what is more, we
do not disclose your IDs or portfolio.)
Disclaimer: The
writers of this column do not personally hold any stock or position in the
F&O market and do not intend to benefit in any way by publishing this
column. The final discretion is that of the reader and we disown any
responsibility for any loss incurred by the reader.
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