NIFTY broke 16,570 yesterday and gave an Indication to come out of longs. So as per pattern longs were squared off. Even after Todays gap up it makes no sense to re-enter longs again. 16,850-16,950 is a strong pattern resistance, mentioned on it on Monday as well. Above 17,050-17075 there is a high risk long trade which can take NIFTY towards 17,210 on spot.,. We need to deal with an event tomorrow so voletility is an critical factor. VIX above 25 is not going to make life easy in short-term. More you analyze this market in short-term time frame more complicated it could get. So view the setup in monthly time frame. Markets globally are cross-correcting the extreme reactions especially in Commodities. Particularly in OIL. So this should be considered as a reaction not a reversal. What’s happening in U.S. MARKETS is even more Intresting. The Zig-Zag moves in NASDAQ is signaling a silence before the storm. 2% down 1 day and 3% up in next day. Such moves often results in significant correction. No matter in short-term how far this market goes. Eventually this should end up breaking its supports. Not in a hurry this time. Yes markets are manipulative But any manipulation is only limited for short-term. At best fall only can be delayed, but cannot be escaped. That’s not possible.. that’s the only reason we have hedged our short trades. We are going to continue for next few months.
Tomorrow is an Ordinary Pattern date so conservative traders should go light overnight. 16,800 17,075 lightly markers for tomorrow if there are no Significant gaps either sides. Go easy.
gann,insides 