Keeping it simple will help to see the clear path. World is made up of billion variables and any one can go haywire without notice and can ruin well laid plans, so of course we will be cautious about picking the levels and keeping the risk in check but currently the path of least resistance for equities is still higher. Some of the fundamental reason for feel good factors are, - Big win of BJP in state elections brings some psychological stability and BJP win in next national election is perceived as guaranteed. - Demonetization.. What Demonetization?! - No global threat ( economical ) at this point. All looks well. Giants are plodding along and minions are chirpy. - France has been able to put aside some worries about Euro's near future by putting in a puppet of power players. To continue from where we left in our last post about shorting the NIFTY after short squeeze above 9000 ( which we got eventually during the Ides of the March at 9200 ), we are betting for higher or sideways price action between 9000 / 9200 ( Support ) and 9500. Well 9500 is just a level out of thin air so doesn't hold much against the euphoria so don't get tempted to short it. Simply play from long-side while it lasts. And again, best way to keep the risk in check is options. And at last, it always pays to look at the other side, when everybody else is looking at ... ;)
even though this has been a one sided BULL rally since jan 17 ;ppl talk abt shorting nifty at every level, just today one analyst on blue channel said he was shorting nifty when everyone else is bullish. bsce of this negative mindset it will take a long time for ppl to respect a good healthy market and for many others to actively come and work in markets