Take it Easy.

The Nifty continues to remain strong (while Friday did not see significant gains. Monday could be different with the Dow up 250+ points).
For short term traders, buying should be done on intra day dips. Profits must be taken, since the Index has come close to 3150 resistance. Now, as the talking heads talk about sudden optimism in the Market, traders should become ready for volatility + sudden declines. The Nifty has already gone up from 2800+. Thus, the enxt move of the market will be a consolidation or a decline. This is about short term traders.

For Position Traders, the Index remains in a trading range. An aggressive buy positionw as suggested at 2975. This position should be protected with a break even stop – if the Nifty falls back to 2975, then get out. The aim of this position is to be in place if the Index breaks out above 3150. For conservative traders, buying opportnities will come on (a) breakout above 3150, and, (b) a dip that comes after the breakout.

What about selling ? The trend is up so there should be no selling. In any case, trend traders should never anticipate turning points in the market. This means we sell only after seeing market weakness. This has not happened yet.