Still waiting for a breakout: Mohit Gaba

The Nifty opened gap down and traded in a 20 point range for more than half the trading session, it finally broke out from this range however traded in a choppy manner closing 17 odd points in the negative. The session ended with the Nifty futures trading at a 25 point premium, which implies built in longs. Based on yesterday’s price action of the Nifty and the Bank Nifty closing higher than its day before close (Bank Nifty has a 20% Plus weight age on the Nifty) my bias is to go long on the Nifty and Bank Nifty which I have done, however with half the usual quantity traded, as the market has shown signs of reducing weakness but not strength yet.

Going long is a risky trade as the larger market structure is negative. Hence a tight stop loss below today low is recommended at 5190.