Last Friday we saw major data released in India, it was GDP data. This data release was below market expectation and as a result we saw panic selling in their markets on last Friday. Last Friday Nifty future lost about 1% and closed negative, on Monday I expect nifty to open negative. Trading strategy will be buy on dips, as I have been bullish for some time and still remain bullish. My buying zone will be 5200 level and target for next 3 to 4 trading sessions will be 5300 level. while stop loss will be placed at 5150 level. Risk reward ratio is comfortable and is worth taking risk.
Many small traders seems like building short positions, but till nifty future holds above 5170 it would be better of we remain on the long side of trade. Article published on 2 September 2012.