Nifty today tested Feb 27th low and found support at 5280. Today was little higher negative day but again looks like market wanted to test that low and see its affects. We doesn't seems to have much negative sentiment in the market that is supporting this market so far.
Market breadth is certainly negative but not enough to start taking shorting trade at this point. If market goes any further down from here, I will be taking shorting position for sure. Lot of people say that volatility is your best friend. Yes as long as you are trading without emotion and have proven system and can sit in front of computer entire day. I don't like to sit in front of the computer entire day to watch market. I like to do swing trading (minimum 1 day holding) and hate day trading so I like volatility but I like to get little safe entry.
Overbought-oversold ratio hasn't changed much. Until its turned negative, I may wait but major down day will push it to negative side and very well be ready for shorting.
If market finds support here and bounces from here and if it is a strong push higher with strong positive market breadth, I will be looking for long positions.
Trading is like an art, you have to be open for all possibilities and can't get stuck to one choice only or you will be burned down by the market.
Just looking at the price and volume of NIFTY, it seems like a weak test of low of Feb 27 and if market get demand it may push rapidly higher from there.... but there are both ideas.... we dont know where it will be headed...
In nutshell, there wasn't much action in this market and after tomorrows results market will make its move. I will be ready with my watch like of strong and weak stock and will see where to go from there.....
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