SMART NIFTY MORNING CAPSULE : Monday’s breakout on the upside completely failed yesterday. To that extent, the bullish scenario is no longer available. It can come back again and markets can do anything but as of now that scenario is on the back burner. The Nifty has come back into a trading range. The trading range was evident for many days; 5250-5500. It has retreated back in that range. Inside this trading range, essentially there is no trade in the Nifty for two reasons. One, trading ranges are difficult to predict and very difficult to trade inside. Second, the extraordinary volatility that we saw yesterday is not tradable. The best trade for the Nifty is to keep quiet. Either the Nifty will take out 5250 or give us an indication it is doing so. And then a short trade would be very much justified or the Nifty will chop around. On a day-to-day basis, the markets will change. So today there is no trade in the Nifty. The trades are elsewhere in individual stocks.
Posted on: Wed, 04 Sep 2013 04:36:56 +0000
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