NIFTY UPDATE
When market shows us so many alternatives at same time then its difficult to take the judgement so in such situation one should act on index levels and go by levels to levels to manage the risk and position sizing.
1) So if nifty holds 24870—24723 then we are in strong bull tone and soon in next couple of days bulls may show their power again.
2) If nifty breaks 24870—24723 spot on closing basis then once should start managing the risk in equity holdings minimum by 25% to 33% and stop trading in futures & options.
3) If nifty breaks 24450 then one should come in action should reduce equity holding by another 25%.
4) And if nifty breaks 23950 then one should reduce equity holding by another 25%.
This is the only way to manage the risk and position sizing when we have too many alternatives opens in index.
When market shows us so many alternatives at same time then its difficult to take the judgement so in such situation one should act on index levels and go by levels to levels to manage the risk and position sizing.
1) So if nifty holds 24870—24723 then we are in strong bull tone and soon in next couple of days bulls may show their power again.
2) If nifty breaks 24870—24723 spot on closing basis then once should start managing the risk in equity holdings minimum by 25% to 33% and stop trading in futures & options.
3) If nifty breaks 24450 then one should come in action should reduce equity holding by another 25%.
4) And if nifty breaks 23950 then one should reduce equity holding by another 25%.
This is the only way to manage the risk and position sizing when we have too many alternatives opens in index.
