The current trend in equity markets are up except for HSI and HSCEI. That too could change in the coming days. Commodities are trending up except for Gold and Silver. Dollar Index is up too.

No trend changes except one were seen in the world markets during the holidays. The one trade that really mattered was triggered on Thursday. The Nifty longs were triggered at 5200 and now we are left with a long position with a stop and reverse level of 5035. That is a good 3% away from our BUY level of 5200.

While this looks large, it is not much more than 1 days Average True Range for the Nifty. My belief is that one really cannot have a stop of less than one days True Range because then one risks the chance of getting stopped out even if the earlier trade turned out to be right.

The world markets have really not done much when India was out of action on Monday. So really there are not many cues for the market to go by. My view is that we could at best see one big day in terms of the range of Nifty points in the next 3 days. There is a fair chance that all 3 days could be lacklustre and narrow range days and that any action that we will see will only be post the 3rd of Jan.