Nifty(5087.3): Markets had a follow through to the hanging man pattern - throwing in a short term sell signal. However the internals of the move still remains a bit ambivalent giving an outside chance of one more rise before turning lower. If \u00a0Nifty heads higher it may either stop at 5217 or below or head slightly higher.<\/p>\n
Two important points from yesterday. One, as pointed out only now Portugal is getting media coverage. Second, the A is to C ratio that we discussed yesterday(see yesterday's chart<\/a>) needs a small explanation. If that ratio is about to play out, I will not be surprised if Nifty heads to even as low as 3900. Unfortuantely, this will be an Iron-clad confirmation only when Nifty hits 4800. Until that one has keep positions small<\/span><\/em>.<\/p>\n So how do play the current set up? Play it through puts- \u00a0Long 4800 put around 23-26 and forget it (Fixed risk). If you are aggressive - write 5200,5300 calls and if Nifty crosses 5225 fold the trade.(The premium could double if the set up is wrong).<\/strong><\/p>\n Support: 5065 and 4990<\/span><\/p>\n Resistance: 5170 and 5225<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Nifty(5087.3): Markets had a follow through to the hanging man pattern – throwing in a short term sell signal. However the internals of the move still remains a bit ambivalent giving an outside chance of one more rise before turning lower. If \u00a0Nifty heads higher it may either stop at 5217 or below or head […]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42,76],"tags":[],"class_list":["post-1402","post","type-post","status-publish","format-standard","hentry","category-indian-stocks","category-premium-content","category-42-id","category-76-id","post-seq-1","post-parity-odd","meta-position-corners","fix"],"_links":{"self":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/1402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/comments?post=1402"}],"version-history":[{"count":3,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/1402\/revisions"}],"predecessor-version":[{"id":1404,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/1402\/revisions\/1404"}],"wp:attachment":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/media?parent=1402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/categories?post=1402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/tags?post=1402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
![chart<\/a>) needs a small explanation. If that ratio is about to play out, I will not be surprised if Nifty heads to even as low as 3900. Unfortuantely, this will be an Iron-clad confirmation only when Nifty hits 4800. Until that one has keep positions small<\/span><\/em>.<\/p>\nSo how do play the current set up? Play it through puts- \u00a0Long 4800 put around 23-26 and forget it (Fixed risk). If you are aggressive - write 5200,5300 calls and if Nifty crosses 5225 fold the trade.(The premium could double if the set up is wrong).<\/strong><\/p>\nSupport: 5065 and 4990<\/span><\/p>\nResistance: 5170 and 5225<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"Nifty(5087.3): Markets had a follow through to the hanging man pattern – throwing in a short term sell signal. However the internals of the move still remains a bit ambivalent giving an outside chance of one more rise before turning lower. If \u00a0Nifty heads higher it may either stop at 5217 or below or head […]<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42,76],"tags":[],"class_list":["post-1402","post","type-post","status-publish","format-standard","hentry","category-indian-stocks","category-premium-content","category-42-id","category-76-id","post-seq-1","post-parity-odd","meta-position-corners","fix"],"_links":{"self":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/1402","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/comments?post=1402"}],"version-history":[{"count":3,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/1402\/revisions"}],"predecessor-version":[{"id":1404,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/posts\/1402\/revisions\/1404"}],"wp:attachment":[{"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/media?parent=1402"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/categories?post=1402"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cashthechaos.com\/blog\/wp-json\/wp\/v2\/tags?post=1402"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}](\"https:\/\/www.cashthechaos.com\/blog\/wp-content\/uploads\/Nifty30Jan2012.jpg\"){kind=link}