Nifty Today’s Trend, Prediction, View, Target 1st Oct
Nifty had yet another volatile day today and traders in general were first stuck on the short side and then they were stuck on the long side and then most brokers forced their clients to square up all their positions. There was sheer panic selling seen today in many stocks especially the midcap names and some Public sector banks and stocks like yes bank now are completely beaten out of shape. Keep in mind these are the very same stocks that were being considered safe counters, anyways there are many other stocks and individual counters which have seen massive panic and wealth erosion over the past few trading days but that’s not the point even Nifty Futures at one point in time was lower than the panic bottom low which was made on last Friday level of 10866 spot Nifty levels and went all the way to 10850 which was our support zone area. In short there was massive panic seen across traders and investors today but as per our analysis, view prediction we do not feel there is much downside(I am not suggesting for one minute that the bottom for this round of decline is done) but all I am saying is that in the very near term the selling seems to be overdone and before taking any fresh shorts or booking loss in long positions which are stuck on the higher side keep in mind that there could be a sharp bounce back from around this area for retracement targets as there are multiple time cycle supports and price cycle supports in the nearby area and looking at the overall picture we do not think that those traders who are currently stuck in longs should be panicking here at current levels and exiting their long positions also we do not see sense in selling fresh at current levels.
The bottom line is that though the overall major trend is sideways for the time being between 10800-11350 it will be prudent to trade in and out as we will keep seeing some sharp volatility in the coming time 100-150 point swings in Nifty Futures can become the order of the day so be very nimble footed and do not get carried away by either side movement. The best strategy to adopt as of now would be to buy into panic and sell into euphoria so do not be into buy and hold or even sell and hold trades for the time being and be aware that sharp pullbacks are likely and possible and when those pullbacks will come traders might be caught on the wrong side.
Good Trading To you!