NIFTY INTRADAY:- 23RD JANUARY, 2014
S&P CNX Nifty continues its closing above 6300. Nifty almost touched a high of 6350 in intraday trade. Bears would cherish that Nifty faced a “notional” resistance at 6350. Bulls on the other hand would be happy with the closing as they would have expected selling or profit taking at 6350 levels.
Tomorrow the big question is;” whether Nifty holds 6300 or not”? On the other hand any closing above 6300 will be a high booster and if Nifty closes above 6350; Bulls would be inching close to their first target of 6470. NIFTY enters Thursday trade with a positive bias; but who knows !!! biases and positions change in this market swiftly.
At the same time one of the better trades for tomorrow is a short position around 6350-55 with a stop-loss at 6365-70. The risk reward ratio could be rewarding in this trade on an intraday basis. The counter trade is long above 6345 with stop-loss at 6325 with targets around 6375-80 and even more. The conventional long can be taken above 6365 with stop-loss at 6350 and the conventional shorts can be placed below 6290 with stop-loss of 6305.
Another thinking engrossing every trader in Indian stock market is “what will trigger a break out and on which side”? I do not know and even not trying to know it because it is important to measure the risk of the trades rather than knowing what will happen in next few days as intraday trader.