Wow! The Nifty has recorded eight consecutive days of gains. Yet, as I have written earlier, this is not a record since in the 2009 bull market, there were 14 consecutive days of gains. So, eight and still counting! The Nifty was choppy today, thanks to the F&O expiry which was scheduled for the day. F&O expiry days are not good days for trading. There was an intraday dip of almost 100 points – a buy on dips opportunity. Such opportunities are coming every day, with the Nifty usually falling 40-50 points intraday before recovering. Manage the risk in Long Positions. With every passing day, there is increased risk in long positions. It is possible that markets can keep on going up day after day, but sooner or later we will have a correction, and, a dip. Traders should ensure that they cut their positions when trend indicators on their charts give a sell signal. Trend indicators include change of direction of ZeroLag MA (21 or 34) , MACD with 17,9,12, Ta-Trend crossover of trendline below signal line, TA-Insync 55-5 crossover of insync line from +45 to below, Trix crosses below its
signal line…. The intra day charts should be at least 15 minutes and higher.
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