AD Code

Friday 16 March 2012

Nifty - 16 Mar 2012 - Budget day blues

The best way to trade today is to avoid new positions and hold existing ones.

The best strategy for today would be to ignore the market movements all together, as these would be knee jerk reactions. Remember, the market is always ahead of the news. There will always be other better opportunities to trade.

However, we would keep in mind the day's range and the broader range for the Nifty in mind. These ranges are 5325 - 5435 (narrower) and 5200-5550 (broader). We may initiate fresh positions with a 20 point stop loss and a 80 point target around this key values. 


In the above chart, the volumes have depleted, indicating lack of interest in market participants. The MACD is resuming its downtrend after a minor reversal signal. The ADX is showing a trend-less market and a weakening of the up-move and a strengthening of the down-move. However the Parabolic SAR continues to hold the buy signal.


Overall, we will be extremely bullish around 5200 and extremely bearish around 5550.
 
On such days, it will be futile to predetermine any trading plan.

Happy Trading !!!


For cash market recommendations see our Daily Pre Market calls on NSE

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Disclaimer : We express our opinions on this blog primarily as a method of record keeping, i.e. archiving what was our opinion about the markets on any given particular day end. As such, trading in derivatives can be extremely dangerous to you and your finances. We strongly advice you to consult your financial advisor before trading based on the opinions published on this blog. We shall not be held responsible, under any circumstances, for any financial loss or profit, that may be accrued due to your trades being affected by our opinions.