Clairvoyance

In my last note, I had mentioned that I will go long above 6000. The market promptly triggered those levels and I am now long the Nifty. The question really is where do we go from here? Well if I knew the answer to that one then surely I would have sold my house and bought Nifty as they say in colloquial Hindi. Clearly one does not claim to have any such clairvoyance.

Despite this, an attempt to forecast the direction of the market can be made. For one, the Nifty made a low of 5727 on 26th nov and almost retested it on 10th Dec. However, the low held and we are now trading much above those levels and within touching distance of the intermediate high of 6093 made on 3rd Dec. Secondly the Nifty has gapped up today and is currently trading above the opening range. If we cross above 6100 in the coming days... ideally today itself... then this move has the legs to make an attempt at 6350 again.

While all this is very good and I am long the Nifty currently, remember that " I am not clairvoyant" part? I will therefore keep a stop at some level to get out of my long positions. As of now 5950 looks like a good level to get out of my longs!