More weakness ?

On Friday morning, the short term scenario is not optimistic. Overnight, American markets have fallen, with the Dow at a six year low. if the Nifty were to touch a six year low, then we would be at 920. Since we are currently trading at 2790, let us be thankful for small mercies.

A narrow, tight trading range for the Nifty is between 2760 and 2850. A dip to 2760 does not justify selling since there is some possibility of support re-emerging. While market may eventually fall, short selling is likely to become difficult, with support coming in at lower levels, every time the Nifty declines. This is what I meant on CNBC yesterday (thursday).

A dip in the Nifty to 2760, is not automatically a sell. If the market consolidates, then the there is a possible long trade with stops below the consolidation. Now, will the market oblige us by not falling further ? This is unknown.

Have Fun!