We are in a downtrending channel for a year now. I have'nt been recommending any longs because of the risk reward since touched 5050.We got a trigger yesterday, a 50bps CRR cut which catalysed the rally, however we should be aware that we are heading to a strong resistance @ 5240 levels. This rally has to loose steam, its is just not possible to hit another 300 points in next 5-7 trading sessions. We are overbought, and if we had to go higher we need a consolidation. We managed to cross 200 dema which itself is a resistance.
I strongly advice to book profits and avoid taking long positions in this market. If we correct around 250 points and stay above and consolidate above 4875 then we can expect to go higher.
This rally is too good to be True..
We can build small short positions in the market around 5200 and above, say PUTS of Feb and March series..
We will have triggers from the UP elections , Budget and a likelyhood of an interest rate cut , in a couple of months.
I strongly advice to book profits and avoid taking long positions in this market. If we correct around 250 points and stay above and consolidate above 4875 then we can expect to go higher.
This rally is too good to be True..
We can build small short positions in the market around 5200 and above, say PUTS of Feb and March series..
We will have triggers from the UP elections , Budget and a likelyhood of an interest rate cut , in a couple of months.
Thanks, good analysis!
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ReplyDeletetoday your prediction came right.what a fall!!!!!
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