ON THE BRIM
Attached Below the Weekly Chart of NIFTY.
As you can see, NIFTY has closed precisely on the Top trend line TT. Now, it is unwise to forecast any direction at the moment. It is expected that wild fluctuation and whipsaws will occur next week. If NIFTY Close above TT, next week, we might see it flying high. But in case a drop happens from this point, and breach BT, in the coming weeks, then we might see it falling with high velocity.
At the moment, 2000 NN is in the SHORT mode and it might give a LONG signal if NIFTY sustains above 5555. But we have to keep our fingers crossed and wait.
We are all aware that, DOW’s price action is the key to Global market direction. It has on the daily and weekly scale has closed with much bearishness.
Strategy I like If 2000 NN gives a long Signal:
Long one Lot of Futures and Buy one lot of 5500 Put of Sept series. This combination will reduce the risk to Rs.6300, but with an unlimited profit potential.
Why this strategy is selected? Since the Global view is negative, we have to expect the unexpected.
