TAKE PROFITS TODAY 22.04.25

Another day, another gap up and a good finish. Suddenly, our indices have become like Gold- moved up so swiftly so high that everyone is now scared of buying! No more talk of Mandi!! This is the beauty of the market- it is always so incredibly quixotic! And that is what keeps many of us hooked to it. Of course everyone loves it when it moves up but we also know that such speedy moves dont last very long either. But we need to play it as it happens, too. Everyday across the last week, one could have said I will buy on a dip. But its been a straight rise, and has caught everyone unawares and dip hasn’t come yet.
Those trapped with longs from earlier are happy to bail out without losses now because the indices has come back to the Feb levels (which is where some serious fall happened). Is that the case with stocks, however? Not really. But many of them have got repaired and that ought to be a relief for many. Take what you get, is the philosophy right now

But why is the market reacting as though the tariff stuff has got withdrawn? Hey, its just a 90 day Pause button. Maybe it has to do with market rumours that India is set to solve the trade deficit problem thru a simple device of buying gold and oil from the US. It is a good ploy if it is true. If we can plug the deficit using this approach (if feasible) then we shall have much better chance at negotiating on other matters. Or, maybe it is just short brisk short-covering? More likely, it is a mix of covering and some fresh buying. Since quick rotation is being seen, traders are having a ball, rotating their positions from one moving stock to another on successive days.
While this is fun while it lasts (and makes some money) note that it does not make for a lasting trend. Positions taken and held and added in dips and subsequent breakouts is what makes a trend.

Undoubtedly, the higher you initiate a trade, the higher the risk. So, unless you can define a clear stoploss level, do not take a trade. Note also that if your stop gets triggered, it does not mean that the upmove is terminated. But, as can be seen in the chart of today, prices are neared the upper channel of the pitchfork tracking this move in the Bank Nifty. In Nifty there is still some room till 24500. Recall that Apr 22 was billed for a turn date. Earlier I had mentioned that the last turn could see a rise last till here. If long, time to take off the longs and wait by the side. There is another turn date coming up for the 28th and I cant quite make out the price signature on that one- whether that will be a high or a low.

Gift Nifty was trading in the red in the morning but has flipped to the green. So, it seems the market is not quite ready to go down yet. 24200 was a target and that is reached. Call shorts have emerged at 24200 and 24500. Those shorts may not be high conviction trades and hence a squeeze is possible. Set a trailing stop at 23800 now. 54600 on Bank Nifty. We have gained over 1500 points on this move. Got some profitable stock moves. Time to protect all this. We can look to buy both indices on pullbacks now.