Dont look now, but the Nifty is not falling!

The benchmark index has been inside a narrow trading range for seven trading days. This range is between 2700 and 2800. If the Index were to go above 2800, this will be an indication of a breakout. Traders should NOT short a breakout. If this breakout is going to fail (we do not know, but suppose if..) then there will be signs of exhaustion / distribution which will be a signal to go short. But an initial thrust above 2800 should not be used to sell.

It is possible that a move above 2800 could actually be a genuine breakout. Therefore, the trade is either go long, or wait for a dip / failure.

SURAT
I will be in Surat on Saturday Feb 28, for a CNBC Investor Camp. If you are closeby, do come and attend the camp and remember to meet me.
These camps are great fun, for speakers as well as participants. I am of the firm belief that traders succeed by acquiring knowledge. The camps provide knowledge. So attend them.