Nifty(4613): The decline from Friday continued and Nifty pushed closer to our projected support of 4530. There was some erratic moves later in the day and markets saw a mild recovery and finished the day paring some of the losses.
From the chart, we have not seen any divergence to indicate that the move is ending but we have to be a little flexible here about taking our profits, a little early. First, the momentum on the daily charts is yet to dip below the level registered when markets hit 4640 in November. Second, there is a hammer pattern on daily charts - this can fail and needs follow up buying to confirm. Third, in the smaller degree we are assuming we are in the fifth wave which is often known for failure to reach ideal levels. So let us keep these in mind.
In the bigger picture though, recovery if any, is likely to be temporary and the broad trend is still strongly lower.
Open Positions:
1)Long Nifty 4500 Dec put @20-21
2) Short Induindbank from 267 (covered and reloaded at 254)
3) Short heromotors from 2025 (covered at 1938, reloaded at 1910)
4) Silver short from $34.2 (booked part at $31.4 and reloaded at $30.65) - Please book profits today at $28.8. When silver breaks $28.1 short again