So we have witnessed one more expiry for the month of January 2013. Needless to say during this entire month Nifty was within a narrow range of 2%, which makes another example of ‘Nightmare for Traders’. These type of choppiness we have seen during the month of October 2012 (check chart). Important point is that Nifty protected very level of 6000 on expiry. This becomes more relevant being the last day of month, resulting a positive Bar/Candle in Monthly chart.
One may argue, …both the views are of same importance during these type of choppiness, Accumulation or Distribution. But as we have witnessed one such incident during October 2012, as consolidation with upside breakout, this time also chances could not be ruled out of a repetition, with Breakout rather than Breakdown. Some important things we have noticed (a) Sector rotation (b) Profit Booking in Midcap shares despite strength of Nifty. (c) Nifty Junior or some specific sectors in Nifty like Cement & metals are bottoming out and ready for Breakouts.
In my view, fresh looser are not yet participated or even attracted towards Indian Markets, for that New high is relevant. So Nifty is bound to make new high, otherwise sooner or later public interests are likely to diminish in NSE or BSE trading, due to higher tax and excessive use of Dabba Trading.
Trading Strategy : IMHO Nifty is not going to break 5950 level, except unforeseen circumstances. So previous trading strategy is still valid, Buy around the level of 6000/20/40 again & again for intraday trades for 20/40 sharp points keeping stop loss of 20 points, till Nifty respects the level of 5960-6200.