Europe's Tumbling!

European markets crashed today evening by as much as 3-5%, and US markets are trading down, wonder how hard will our fall be tomorrow morning!

Chartically speaking, we have to be above 5140 to remain positive. If markets go there, one can assess whether longs can be taken, till then happy shorting :)

Time to go short?

Nifty is showing signs of lethargy....With FII's selling big time in Nifty Futures. Last count on Friday they sold off Rs 1000 cr on Nifty Futures. Volatility index rose to 21, which is not a good sign either, since Vix rose from a minimum of 15. When the market was going down the Vix was hovering in the late 20's and early thirties.

There is nothing to panic as of now, infact the market is currently still in the positive zone, however it is showing signs of lethargy. Hence any new positions that you take on the nifty must be calculated and backed by strict stoploss. I am not sure, whether it is the right time to go in for shorting the markets, one can go in for adventurous shorts however the markets are seen to be rebounding fast hence one must have a trailing stoploss in place.

Hence if you had long positions, perhaps its time to cover them up, shorting well it depends on your profile (whether you are a high risk taker). I dont have time, as I had written earlier I am off to australia, else I might have been tempted to go short....

Happy Trading!!!

Nifty Stay Put

In my last post, I had written if Nifty crosses 5200, I would square off my long positions. So I did on 17th March, and I squared off my positions at 5228. Today with the opening of the market, the market would be touching the same levels. Hence, Nifty did basically nothing just zig zag random movements amounting to nothing. Whenever I dont see any clear pattern, I try to stay clear from the markets. For the past one month, there was no clear signal for going up, and in this market it is really difficult to short. Hence in such situations it is best to stay put, rather than to overtrade and lose money. One important lesson in making money on nifty is that it is equally important to do nothing at times.

Will see if the markets move in a zone, with downward bias, I might take short positions. However I am going off to australia for 10 days, hence will not take positions till that time.

Happy Trading~