Nifty

As expected Nifty moved up & achieved all targets - 5140 / 50 / 60. I
suggested that you short at higher levels. If you have not shorted, you
will get another opportunity to short at a higher level tomorrow (5278)

For those who have shorted between 5240 to 5260 - (I've entered a short
at 5250), Keep a SL at (5323) on a closing basis and continuing to hold
the short position for the short term (7th May). I'm "hoping" that the
Market will correct by this time. I can be completely wrong! Trade at
your own risk!! If you feel uncomfortable do not trade!!
Nifty will make another attempt to move up tomorrow and possibly even
Monday - 30th April and trade in a narrow range.

Nifty will move to touch 5278 / 90 and hang around this level over the
next couple of days. The thick black dotted line has offered support
and it seems, will continue to offer support for the next couple of
days until it breaks the line. There seems to be a clear trading
channel (marked in BLUE). I would be worried if we close above 5323 as
this would indicate strength in the market and a breakout from the
channel would lead to targets of 5450 - 5750+

The thick pink line offers resistance at 5278 and there could even be a
breakout upto 5289. There is also a trading band between 5323
(resistance) & 5200 (support).

The trend will continue to remain down until 5323 is taken out!

VIX

Need to keep a close eye on the VIX as it could have given a false
breakout. As suspected, it has closed below the trendline. I've
included the VIX chart as well for your review.

Lets keep a close watch on this tomorrow and figure out if we should
continue to hold the short / close out and enter at higher levels. If
VIX falls, then that would indicate further strength in the markets and
it would not be wise holding the short position.

Alternatively, you can hedge your short position - buy an equal
quantity of calls * buy 5300 Call - May Series tomorrow and continue to
hold your short position as well.

Visit: http://when2buy.blogspot.com

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Posted By Gautam Bajaj to Equity + Nifty - Positional Strategies at
4/30/2010 12:30:00 AM

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