Nifty Futures Rebound From Support at 5940 - 5950 !!!
Just as this blogger had written in the last post titled "Nifty Futures Approaching Support at 5940 - 5950" , Nifty futures rebounded from the support area on Thursday. The Asian markets were trading with positive bias as indiacted in the previous post when the trading opened in the Indian markets on Thursday. However, a bout of selling which came about in the banking stocks on the back of some doubts about the exposure to micro finance and real estate sectors lead to the Nifty futures' fall to the previously indicated support area. Depending on the entry point, the sell signals indicated at 6084 and again reiterated at 6134 levels have lead to maximum favourable excursions ( read possible profits ) of 169 and 209 points. Even if the positions were covered at the earlier widely known support at 5940, it would have yielded to net profits of 140 and 190 points. Even if a trader would have strictly followed the system rules and set up the trading stop at 5049, against the short in Nifty futures, even then it would have earned handsome profits. And if a long position was established at the support at 5940 expecting the bounce as indicated in the previous post, it also would have gained another 100 points on Thursday itself.
