Hold long positions with stoploss below 5327: Mohit Gaba
Published on Tue, Feb 07, 2012 at 08:58 | Source : Moneycontrol.com
Updated at Tue, Feb 07, 2012 at 08:59
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Hold long positions with stoploss below 5327: Mohit Gaba
Given bank nifty’s heavy weightage on the nifty and no confirmed sign of a reaction, long positions should continue to be held with a trailing stop below 5327, a close below which would be the first sign of weakness, says Technical Analyst, Mohit Gaba.
The Nifty unfolded as expected, it has continued its strong upward move towards its logical target of 5435 as stated yesterday. The bar created today however gives a feeling of indecision, coupled with the momentum indicators being stretched on the overbought regions and a stiff resistance at 5400, the nifty has a good chance of correcting, however that would be forecasting.
On the positive side the bank nifty has broken out of an important resistance level of 10080 yesterday and has continued to move up today. Given bank nifty's heavy weightage on the nifty and no confirmed sign of a reaction, long positions should continue to be held with a trailing stop below 5327, a close below which would be the first sign of weakness.
