This week, we will look into the weekly chart to assess the situation. You can see that NIFTY is now moving in a descending channel. The bottom line of the channel lies at around 3100, which is the weekly target in a couple of weeks. We can expect a bounce from this pint towards the top trend line. That will fall to nearly 3790. We will not go beyond that point at this moment, even though I still hold the view that the final target of NIFTY is 2550.
As NIFTY is getting too close to the breakdown point, 3800, which was tested and bounced back 3 times, you can imagine the strength of the breakdown which could take place during next week. It could be a real Tsunami.
As NIFTY is getting too close to the breakdown point, 3800, which was tested and bounced back 3 times, you can imagine the strength of the breakdown which could take place during next week. It could be a real Tsunami.
Update on the trading idea of last week.Please recollect that I had recommended a 4300 straddle last week, where you were asked to buy a CALL and PUT of Oct series. Those who headed got it for a combined cost of around 290 (CALL+ PUT) . Now it stand at 437 (377+60) . This means on a single lot of straddle, you have gained Rs.7350 (147*50); that too risk free. My recommendation is to hold to this straddle. Of course, it is my personal view and the final decision is yours.
