Indian markets opened 2% upside and finding difficulty in moving higher, one can expect some profit booking in next 2hrs such it will fall and close around 1% upside. There would be almost no impact due to European Market.
One need not initiate fresh LONG from here because upside is capped, we already has 10% or more upside in just few days which raises the concern on the sustainability of this rally. In fact LONG position holder should book partial profit now.
Initiating SHORT is also not a better option until we see the beginning of downtrend, only if Nifty falls below 2800-2850, one might go for SHORT. Those who are already holding SHORT (future holders must have exited with stop loss, we are talking about those holding PUT options) should continue to hold, it is very difficult call to hold loosing position in trade but we are still not convinced by this rally and doubtful of its sustainability. Partial losses can be booked form even PUT option in order to lighten up the position.
-Sandeep Jain, Associate, HBJ Capital
Note: Pls read the disclaimer on this site. Investors/ traders should do their due diligence before taking any action based on our analysis.
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