Trading Call for Markets

On May 4, 09 , I had given a trading call on our jagoinvestor google groups .

hi all

I am giving a trading call in this post . Please understand what I am
saying and take your decision .

Nifty was moving in a trading range from many weeks and finally Nifty
has broke out from 3520 levels and now its a very strong support
point . At the time of writing this , Nifty has already moved up to
2630 and hence now its showing positive momentum on upside .

People can buy Nifty Futures or Options If Nifty comes back to 3550
levels back , That would present a good opportunity to BUY . Please
understand that It does not guarantee that Nifty will go up again ,
but probability favours it and from Risk/reward point of view , its a
good Trade . So be patient and wait for it to come back to 3550
levels . If it comes then BUY , else forget it .

People who dont understand Derivatives can buy or sell Nifty ETF’s .

- Dont be greedy and put limited capital , dont sell your home and put
all your money .
- Be Patient and wait for this to happen , If it doesn’t happen , leave
it and look for another opportunity .

Manish

Markets did move anywhere on 5th May and on 6th it went up and corrected back to levels of 3630 . From this point it can move any side .

Learn Technical Analysis Basics

Either to 3500-3550 levels OR 3750 levels . Markets will give clear indication about the direction tomm (May 7) .

Today I updated the trade on the google groups and sent this message .

Update on this Trade

Now Nifty has made a good upmove from 3620 levels (two days earliar
close) and made a high of 3700 levels today and finally came the
profit booking . People who wait patiently are in a good position to
take the trade now .

Look at Nifty

On 5 day charts , http://in.finance.yahoo.com/q/ta?s=%5ENSEI&t=1d&l=on&z=l&q=b&pg
=e50,e200&a=v,m26-12-9,ss,r14&c= . you can see that prices didn’t break
yesterday’s low and found good support to close above that . This is a
health Sign . RSI and Stocastics are in oversold region and hence we
can consider it as a good dip .

Plan to tomorrow

Markets are uncertain , we should have a view but should have the
flexibility of changing our view as and when markets tell us .

- If markets open strong or flat tomm and starts rising , Wait for 15
min and go Long with SL below the day low .
- If markets starts Declining , WAIT again with patience and go Long
only when markets starts rising , When do we say prices have started
Rising ? Ans : When MACD is above 0 .

Momentum is up and its very strong , so it would be wise to avoid
short position . though you can miss a big profit , but the ultimate
aim is “not to loose” , If you dont loose , you are already a winner
in markets .

- People who dont trade regularly or who are new to trading , should
trade very lightly , dont put big money .
- Use SL strictly , markets dont love people who dont put SL in there
trades.
- If trade fails and it goes against you , just get out with small
loss and dont feel bad . It happens . Accept it .

Discipline and Money management is what you need while trading .

Manish

- People can trade Nifty Futures or Nifty Options (Call 3600 or Call 3700) .
- People who dont understand derivatives can trade with Nifty ETF’s

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