Today's news about taxing Mauritius based investments in India is going to gyrate the market for some time until we digest all details and know the full impact. Even though today we saw a sharp drop at the open, no wonder where it the drop stopped ! This is an example of how to find good technical levels to trade against. Last Friday we shorted NIFTY
from 7775 and now that level is very pivotal for future price action. Of course now that trade has been closed with good profit since our trailing take profit orders hit around 7725
on the bounce up and now short term bias is up for NIFTY
. But be mindful that our medium term strategy of shorting NIFTY
from the sell zone specified at 8000 - 8200 resistance level
is still valid and we are going to stick with that.
For today we are going to leave NIFTY
alone until shock news effect wears out and we will be looking for any only extreme levels to get involved. No point in chasing it up or down today.