Bounce from Correction.

Rajv Malik wrote “you have been saying that the nifty is in downtrend. what do you have to say on its bouncing back again and again in the past few weeks ?”

My Notes:
This is not correct. I was saying that the Nifty is in a correction. But once we touched 5400 the support at 5350 was visible. On Tuesday morning on CNBC giving a tech call I had suggested that at least a short term low is in place. I repeated this at 11:30 on that day when speaking to Lata, the Nifty was at 5370 when I suggested there is no opportunity to go short since we are at support. On Tuesday morning, I wrote in this blog “I feel there are two trades in the Nifty: First, a sell on rally for a test of 5350 or lower. Second, the bounce from whatever lows are made. I usually take only one side of the trade (long or short, ignoring the signal for the other side) but these two trades seem to be worth taking.”

I write this in some detail because I wish to explain that I am a short term trader. Therefore, I do not have fixed views and positions. They have to change in accordance with market flow.

The Nifty remains in a trading range with 5350 and 5550 as boundaries.  Since were are all waiting for the Nifty to break below 5350, We should consider the possibility that the Nifty may cross 5550 decisively. What then? I am not saying this will happen. I do a lot of mental scenario building, which I hope enables me to accept any market position without getting into denial.