Ok, despite the huge move on the budget day, Nifty gave up about half the gain and closed right at the 20 High EMA.My own sensing is that it is too premature to think that the correction is over and that the up move has resume. May be it has, but it has to be confirmed.
I guess the up move will be confirmed, if Nifty were to close above the high of the last Friday. Alternatively, if you go short, your stop loss should be above that high say around 5030.
So the options are: if your hunch is to go long, either wait for it to close beyond 5030 or wait for a correction to enter on the long side around 4940. The trailing SL for longs should begin with 4780 and can be moved up steadily.
If you hunch is to go short, then you SL should be 5030 to begin with and then moved down steadily. The targets could be 4940 and then 4890 and then 4780.
Only the market knows what she will do. You can trade both ways, but a.) you need to know what your plan is and b.) exit with small loss if you are proved wrong by the market.
If you have any comments please write to me at stockmarket.methods.in.madness@gmail.com
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Disclaimer: The above analysis is just that - my analysis. If you choose to trade on the basis of this analysis, you will be solely responsible for the outcome of the trade - profit or loss. Please keep in mind that trading and in particular day trading is not for the novice and there is significant risk of loss of capital in trading
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