As the year 2013 has ended, there were traders on the floor who were making their last smart move on the last trading session of the year. Those people are called “Professional traders“. So if you didn’t knew the importance of the that last trading session, you have missed one of the finest trading opportunity. But still its not so late to prepare yourself for a great trading idea in 2014.
Why is last day, week, month so important?
On the last day of last week of last month, we will have a closed candle on the chart. Closing is watched very closely by all the professionals, say it portfolio managers, professional traders, large investors. This closing will decide the direction of the market for next year. I feel this day is extremely important because it comes only once in a year, so have a close a watch on Nifty future.
Whats special about last day of 2013?
On the last trading day of 2013, we have seen nifty closing near the all time high. The closing on the monthly charts was not a strong one, even though nifty broke above all time high but still it was not able to close above it. Therefore we expect some selling in nifty in near term. On last day closing was below 6333 on nifty, hints rejection at higher level.
How to trade Nifty in 2014?
Traders must go short on Nifty future as there was some weakness in the end of 2013. I would recommend to place a stop loss above the 6400 level on closing basis on the last trading session of the any month. Fundamentals were weak, we have seen November IIP was -2.1. I will be looking to keep adding short position till we see nifty not closing above 6400 on monthly chart.