On Friday, optimism was evident in the Nifty since morning. The Nifty tested the patience of the bulls by falling to the levels of 9050. Technically, the double bottom formation has formed in oversold markets and at least we can expect the Nifty to move closer to 9300 with a minor resistance at 9200. However, it is mandatory to keep a stop loss of 9040 for all long positions. Reduce weak long positions between 9200 and 9300 levels.
The strategy should be to trade short between 9250-9300. Keep final stop loss at 9350 for the same. Or buy out of money put options for the month if Nifty breaks the levels of 9040. Break of 9040 would be negative for the market.