So now we are in unchartered terittory - how do traders determine at such time - what could be possible supports
Looking at global - one can expect more carnage - another 200/300 points
But how do swing traders deciede - assuming booked 1/2 profits at 7200 levels i.e. prior support - does swing trader book profit now - what would have promted sukhani to close his positions
When there is global turmoil and the market is in new territory it is impossible for any one to exact predict where this fall will stop.The possible area of support is estimated by Fibonacchi ratios,channeling ,De Mark methods etc but they all are just estimates these levels may and do break.Two of world,s best Elliott wave analysts have said that they don't see Nifty below 7200 but Nifty went below 7000 now.
Markets don't fall 200-250 points every day so when there is steep fall swing traders book part of profits because bear markets have very sharp rallies also.So the rally also will be very fast and if one is prepared to let go 200 points from his profits then one should book profits only after the reversal and be prepared to loose 200 points from the bottom.
Sukhani made 250 points in options trade ,it is equivalent to making 400 points in futures trade.He probably is expecting a relief rally.So he decided to take profits.
No one has any clue as to where the current fall will end.
Smart_trade
