One more day when Nifty Future made a new high and also closed firm...Our Markets last 10 days almost 12% rally .... No technical , no fundamentals , no Open Interest ...100% Missions rally ... I would like to add that we are in the age of Automated Trading, where the transactions are executed with predefined formulas and hence when down side momentum starts, the machines will calculate faster/emotionless way than a normal human being and this will also be supported by Newton's law, hence ordinary investors have to guard his interest a bit more carefully....Anywazzzz.....
I continue to maintain that we are quite near the top leaving aside few points more if market opens strong tomorrow. Reliance giving support to index while catching up with the overall market continues to be open. Hence one need not go short first thing tomorrow, until market gives some indication or one is ready to sell future and buy 5900/6000 call depending on ones risk profile and is willing to wait till the end of the settlement without getting panicky or loosing patience. Alternatively, as suggested yesterday, one can consider buying 5500/5600 put which were available at the end of the session for Rs. 15/21.50 respectively.The best and safe strategy would be to sell delivery based and wait for the correction to buy.Nifty Future going below 5770 will be the first sign of market getting ready for correction and if the overall market looks weak one can consider going short with strict stop loss of 5800. On the down side 5725 may offer trend line support.
All the best.
