Sunday Afternoon

In response to comments by Karthik, I have a case study on HDFC in one of my blogs. .

With the Nifty now at significant resistance, (the 3150 – 3250 zone) , traders must be wondering on how to trade in the coming week. Just as the Nifty faced repeated resistance when it started moving up, it is likely to see support if it begins a correction. Initial support may come in around 3050, then 2935, then 2850. If the Index does continue to move up, crossing the 3250 threshold may be slow and troublesome.

This is a time to avoid trend trading, and, use momentum to go with the market flow. in choppy conditions, buying / selling at momentum extremes may be a less risky trade. This means, open up your intra day charts apply some momentum indicator like RSI, Stochastics, or similar, then buy/sell at extremes. Trendline breaks can also act as entries / exits in a non-trending environment.

Have Fun!