The Nifty is in an uptrend. The trend has been up since the Nifty moved above 4635, and, the Index closed yesterday at 5150 at a new 10 week high. The flow is clearly UP, therefore traders should position themselves on the long side.
This week on CNBC, I have explained that traders should maintain overnight long positions in the Nifty because the big gains will come in the gaps. There are periodz when the gains come on gap ups, then the market trades in a narrow rangw throughout the day. In such scenarios, day traders do not make money even though they may be positioned on the long side.
Can this long trade go wrong? Of course, anything is possible. The trade was taken at 5100, with a stop below 5050. This level of 5050 remains the point below which long positions will be closed.