Thursday, February 26, 2009

Dont look now, but the Nifty is not falling!

The benchmark index has been inside a narrow trading range for seven trading days. This range is between 2700 and 2800. If the Index were to go above 2800, this will be an indication of a breakout. Traders should NOT short a breakout. If this breakout is going to fail (we do not know, but suppose if..) then there will be signs of exhaustion / distribution which will be a signal to go short. But an initial thrust above 2800 should not be used to sell.

It is possible that a move above 2800 could actually be a genuine breakout. Therefore, the trade is either go long, or wait for a dip / failure.

SURAT
I will be in Surat on Saturday Feb 28, for a CNBC Investor Camp. If you are closeby, do come and attend the camp and remember to meet me.
These camps are great fun, for speakers as well as participants. I am of the firm belief that traders succeed by acquiring knowledge. The camps provide knowledge. So attend them.

4 comments:

DERIVATIVETREND said...

As you said Nifty in Narrow range of 2700 - 2800. I think it is in the way to break its higher range of 2800 by tommarow. As I say earlier that Nifty in tha way of 2950. Where I take short position in nifty. As I already take a long position @ 2712. Your recommendation is really excellent. Thanks.

Lakshmi Ramachandran said...

I rever you the most amongst all the analysts on cnbc. in fact i used to hear only to your views. now i do my own analysis and would be honored if u visit my blog http://vipreetinvestments.blogspot.com and leave a comment so i could know whether my analysis is up to the mark
thank you
Lakshmi Ramachandran

chandu said...

HELLO SUDARSHAN JI AS PER UR VIEW U DONT SEE A BREAK DOWN IN A HURRY AND U ARE EXPECTING A UPSIDE BREAK OUT.SO WHAT IS THE GOOD LEVEL TO GO SHORT?BECAUSE I GOT STUCKED IN 2700 LEVELS WHERE I WAS SHORT IN THE MARKET.WHAT SHOULD I DO WAIT PATIENTLY FOR DOWN SIDE BREAK OUT?OR SHORT AT HIGHER LEVELS TO AVERAGE?
PLEASE GUIDE ME SIR

I MISSED OUT A CHANCE TO MEET U.IAM NOT BELONGS TO SURAT.I WILL WAIT TO MEET U IN MY CITY BANGALORE.

chandu said...

Hello sir today i covered my shorts.if it is possible plz taught some market exits and entering ways.we are not having a chance to attend ur camp.

thank you.

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