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Book profits in Long positions. Major down trend can resume anytime.

As expected nifty almost completed sideways range bound momentum today.
Previously 11450-11550 levels expected as upside target of counter trend move, But as per latest data and latest chart pattern, upside appears to be limited to 11375-11400 zone only.
Hence, those who initiated long positions at lower levels around 11100-11150 zone, Book full profits in Long positions.
As mentioned earlier, Major trend is down and this bounce is part of counter trend.
As major down trend can resume anytime.
Book profits in Long positions and Avoid building fresh long positions.
Option data analysis showing that 11400 appears to be strong resistance for this week.
11200 appears to be highest open interest in Put options.
Hence, today's range for Nifty is 11400-11200.
Risky traders can initiate fresh shorts at higher levels. Keep stoploss at higher levels.

Regards,
Suryadev Bandari
Research Analyst

 

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