My main posts will be restricted to Nifty only and will be updating DJIA outlook sporadically to help take positions on DJIA futures on NSE. DJIA has a pending upside of 11400-11450 in September regardless of what the Fed or White House comes with. However, risk averse traders should not take Long positions on DJIA. Rather one should wait to see how 11450 pans out on spot. 2 consecutive closes above 11450 on DJIA opens DJIA for 11850 levels where shorts can be safely opened with a 3 month forward contract.
On the other hand, if one wants to short DJIA, shorts should only be initiated after 2 consecutive closes below 10800 for a target of 10200 levels. One should not write off the Dow so easily. It may make one more attempt towards 11k plus levels in December. The much awaited collapse on Dow may not come before February 2012. Eventual target is a minimum low equal to that we saw post Lehaman Brothers and possibly fall further as well. However, blind shorts should be avoided as one can be marginalized / trapped for filling up margins. On NSE, there is no facility of options on DJIA futures.
The fall will be led by banks only to begin with. Transport has confirmed the bear market already. Enjoy shorting from a suitable level and reap the bumper rewards in due course of time.
On the other hand, if one wants to short DJIA, shorts should only be initiated after 2 consecutive closes below 10800 for a target of 10200 levels. One should not write off the Dow so easily. It may make one more attempt towards 11k plus levels in December. The much awaited collapse on Dow may not come before February 2012. Eventual target is a minimum low equal to that we saw post Lehaman Brothers and possibly fall further as well. However, blind shorts should be avoided as one can be marginalized / trapped for filling up margins. On NSE, there is no facility of options on DJIA futures.
The fall will be led by banks only to begin with. Transport has confirmed the bear market already. Enjoy shorting from a suitable level and reap the bumper rewards in due course of time.
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