Market Update:
Nifty opened with a gap up of around 70 points (on the back of 500+ point increase in Dow futures and +ve Asian market cues) however couldn't sustain the momentum and drifted lower later in the day before closing almost at par. Todays gap up opening was used by many to book profits. There are many smart investors who had gone long at 10500 levels and are now booking profits at higher levels (understandably so). Todays movement must be treated as a mere profit booking and nothing else, its healthy for Nifty to see some consolidation at this level. Now this profit booking may or may not continue for few more days. Important thing to note is that Nifty is still very much in bullish territory and we should not read too much into the fall from higher levels today. Call for the day is to maintain long positions with a stop of 10820 levels. After few days of consolidation we should see another leg up. As per my wave counts there is still some room left for Nifty to move up ( refer to my older posts for wave counts).
Trading Recommendation:
For now continue to hold the Long position initiated at 10650. SL is now 10820 (one candle close below on 15 min chart). If 10820 is breached then book profit and sit out and wait for next trade. We have already booked around 180 points profit in trade-1 last week ( 10600 buy and 10780 sell) and sitting on around 200 points profit on this trade. Continue this long position till SL hits. On the upside, I can give you many targets but those are not important so for now focus just on holding your longs.
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