The Nifty almost touched the bottom of the range of values at which I recommended to go short namely 4700 - 5000. As can be seen in the chart above it now trades just above trend line support. It is possible that we get a bounce from here that may give another shorting opportunity within the afore mentioned range. Given the price action in the S&P 500 I still favour weakness and combining that with my bias from the emerging/developed analysis below I favour an eventual break beneath this trend line. My ideal scenario is a return to the range that was trading before the post election madness, between 3300 and 3700. I would suggest selling pullbacks up to 4450 with a stop over 4550. Alternatively wait to see if it gets back into the range that was mentioned earlier; the option for the truly safe trader. As always good luck.
