Answers to comments & Process of Consolidation Likely.

Here are my answers to comments.
rocky said…
thanks sir for your revert but one thing i would ask this was swing trade and what about intra day trade on expiry day as nifty broke 3 times orb…

My Notes: This was a swing trade with the bullish head and shoulders as the base. ORB should not be traded every day, and, certainly not on F&O expiry days.

rohit said…
Sir but what is your gut feeling? is the bear market over? Should one start buying on dips or start shorting heavily in the range of 5450-5700.
My Notes: My gut feeling is that there is more downside to come. But, I do not trade on these gut feelings. Currently, trend is up while momentum is coming down, suggesting a consolidation or dip. That’s the trading view.

Kuldeep.rk said…
Dear Sir,
Shall we expect Nifty to fall below 5325-30 area to fill the gap till 5200?

My Notes: I should think so. But, the key question is when? Maybe now, maybe some weeks later.

Process of Consolidation Likely

After a sharp 250+ point rally, it seems reasonable to expect the Nifty to begin a process of consolidation. For intraday trading, my setup is to look for intraday ranges to breakout / breakdown. While I will take short positions if there is a breakdown, volume will be low, since we remain in an intermediate uptrend.

Focus on stocks rather than on the Nifty makes more sense. While the indices consolidate, there will be moves in individual names. Three stocks on the buy side, discussed earlier in this blog are Tata Motors, M&M and Hindalco. I am looking for corrections in these stocks to take a long position.