1. It was a 'Zor Ka Jhatka' real(ity) show for the hoping bulls that the earlier breakout level of 5350 since last year will stand fort . But Hope is the lousiest hedge in trading such trending Markets.
Nifty is down more than 1000 points since the top of 6338 ,out of which since the start of 2011 it gave apprx. 900 points and since 1st Feb , new selling came when unable to sustain above 5550
2. This chart was posted on weekend ,couple of days back, in the post :
So the immediate term target was reached easily .It pays to sit tight with the larger trend.
3. FII uncles were helpful and sold in excess of 725 cr.
4. Option analysis shows resistance building up at 5400 levels where 23lac calls were added and 9lac puts were reduced. Aggresive buildup at 5100 shows participants hoping this as next support level below 5300.
5. Now 5350 will act as resistance ( intraday long only on convincing trading above today's vwap at NF 5350 level ) and short term target of 5200 levels and below may be achieved. See details at post :
6. Volume profiles are also indicating a resistance at 5400 level and aggresive longs to be entered only above yesterday's high of 5440.
7. Does the premium in NF shows that people are still buying at dips ?? If so then it may help to achieve the target of 5200 or below.
Start booking Shorts below 5300 level in phased manner . No longs now, either sit tight with shorts or stay out. And ----------