Nifty View: No less than a scary roller coaster ride for traders in today’s trading session as the benchmark Nifty index oscillates within a day’s range of over 300 points. Price-wise couple of things have happened. First, the short term trend of the index has turned down and we have a bounce-back in our hands now. This means early next week a failure to scale above 15,800 may see follow-through selling. So keep your long positions restricted in terms of your holding period. Second, from a low-volatile market, the index has now moved into a high-volatile state. This means, you need to double careful with your traders as stop losses will be wider and so you need to work on your risk and lower bet size so that you don’t lose a lot in this volatility. So strategically it’ll be better to be extra selective with your trades and trade less till we see a slow down of this underlying volatility.
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