Thursday, May 16, 2013

Short Selling - Get Ready To Take Another Shot

Markets are cruising along in overbought territory and we need to ready ourselves for another try at short selling. The last try was when I had given a call for shorting Nifty on 10th May. Check Here. And on 13th May Nifty had fallen 132 points intraday. But on 14th May I had warned of bizarre market movements with wild illogical swings and volatility in this post here. The very next day on 15th May Nifty rose 138 points intraday. Hope you can sense the true meaning of bizarre market movement. Lets look at the daily chart of Nifty.
What you see on a particular day in market is just some weird and calculated posturing by big players and not the true direction or trend of the market. So do not get carried away by these bizarre market movements. Selling is round the corner and if I am not mistaken it will start within next couple of trading sessions. I feel tomorrow's trading session will give us the final signal for selling. From that angle tomorrow is a very important trading day, which will define the market's direction in short term. Keep vigil!