Thursday, May 29, 2014

Nifty, after a pause, broke below the critical mid-channel support @ 7314 and fell.

Nifty Intraday Update-III

Nifty Intraday Update-II

Nifty Intraday Update-I

Nifty Pre-Market View.

FII's are net selling in small quantities for the last three days.
Prices, in the short term, continue to close below most key averages.
"Flat Correction" is in the contention & the direction is now "biased down" in the ST till prices close below these key averages.
Holding above 7314, uptrend could continue....(7314, week pivot, also approx. the channel support)
The strategy that has worked well with low risk-high reward ratio is "Initiating a trade at 50%-61.8% retrace with 80% as SL".
VIX range for the day is 7262 - 7397.
Being a settlement day, prices would behave erratically. Stick with your system and prevail over choppiness with disciplined following.