It is spending much time in the vicinity of 5000 (+ or - 100 points around 5000). It is still bullish but surely nervous. And a nervous market is always riskier for the investor / trader. Sudden moves are 'normal' as markets get nervous. With the world markets seeing corrections, it is 'likely' that the needed correction sets in.
In all probabilities it may be a deep but fast correction. There are a lot of similarities between the market rally of 2003 and the current one. But it may be too early to conclude on this similarity.
I shall keep a trailing stoploss at 5020-5000 now and try to book profits if the markets try to move beyond 5125-5140. Only break below 4900 can qualify for short selling.
Happy trading !
CA Rajiv D Khatlawala
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