RBI induced Volatility

I continue to be long the Nifty and continue to pray that Europe continues to make the right noises. In my long position I am aided a bit by the fact that earnings expectations had come down so much that any result looks to have beaten expectation. Whether the result is good in absolute terms is another matter but as long as CNBC and other media can flash that the actual earning has beaten expectation, Nifty will get a boost.

But today we have the RBI and what it has to say could have a big bearing on where the Nifty goes..... for one day. After that the Europe will again hold centre stage. So the key, for my trading position, will be to weather the RBI induced volatility for today. After that as long as Merkel and others stick to the script, I should be okay.

But despite my hopes, I have to go by what my system says and currently it requires me to cut my long positions and go short if Nifty futures trades below 5006. This I will do without worrying about the consequences. But I do hope that the RBI induced volatility does not unnecessarily trigger the SELL.