Nifty Views!!!

Hmmmm…is it a start of a full blown correction or is it a simple pullback in an uptrend?

 To phrase it a lil bit differently is the glass half full or half empty?

Well a trader is faced with these questions quite often, and then the answer often depends upon the bias that the individual is carrying for that particular day or week. Simply put sometimes our bias also gets guided or influenced by our trades. For example if you are short from 5300 odd levels then your outlook is bearish (damn we have a correction on our hands), on the other hand if you are long at 5200 then your outlook is bullish (gee I am lucky to have bought into the pullback)! Whose right here? Well both scenarios are correct, but there is one common factor which can make both go wrong, and that is the lack of discipline and failing to adhere to their respective trade plans.

Why I started on a preachy note was coz Nifty is critically poised, at where both the Bulls and the Bears get to test their faith! What’s happened so far, and what makes this a pullback;

·         We retraced normal to 38.2% fib from the top

·         We are back at the sweet spot aka value zone i.e.  between the MA’s often looked upon as an important buy point

·         We did make a new lower low (for time being) but yet to make a significant lower high!

       

And what would make this a start of a correction (also read the previous post);

·         We drift from here means we have a Lower High

·         We break the recent pivot low

·         We trade below the key MA’s

What’s the status quo? Well we have two Inside bars vis a vis the Monday’s bar, therefore the hi and lo of that bar become significant…infact most of the stops (for shorts and longs) would be in that vicinity! Technically it’s almost a 100 pointer intra play field with the Bulls at 5280 and Bears at 5180…let us see who leads the pigs to the slaughterhouse??? To sum it up;

"Don't judge each day by the harvest you reap, but by the seeds you plant." Robert Stevenson