The Nifty opened as expected with a huge gap and sustained its upmove. It rose well beyond my target of 4400 indicated on Friday.
Well, for most of my recent recommendations, the targets have been achieved or surpassed. Presume all of you could benefit.
The Nifty rise was huge - almost 235 points. But similar rallies have occurred at least four times in the past six months!!
The Nifty has cleared the 38.20% retracement and now may face resistance from the crucial 50% retracement which is placed at 4560. In all probabilities , the Nifty should form a 'doji' suggesting a halt to the upmove.
Whether it happens , time will tell. But it may be a good habit to keep booking profits. At the back of the mind , remember these are the corrective up moves that we are witnessing in an overall down trend.
Inflation data is due tomorrow . And I suppose market will now look out for economic data , the political situation being cleared yesterday.
While I may sound conservative, keep booking profit while you get them or at least protect yourself with derivatives!
Happy trading
CA Rajiv D Khatlawala
2 comments:
Is your chart correct? I don't see a GAP on ICharts?
The Nifty / Sensex opened in huge gap yesterday - though it is not depicted on icharts ...
In case you have a intraday charting software like Falcon then it will be clearly visible
For our practical purposes WE MUST consider it as gap. Else technical levels may become faulty.
Regds
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