“Our markets started proceedings for the day with a marginal downside gap. In fact, things were not as bad as the SGX Nifty was suggesting early in the morning. So, somehow our markets shrugged off negative cues from the global peers and started trading on their own. During the day, there were couple of attempts to surpass and stay above the 10500 mark. But, on both these occasions, sellers dominated the market; eventually resulted into a tail end correction to close almost at the lowest point of the day.
Since last three days, our markets remained under pressure and have come off a bit after retesting the higher boundary of 10640. More importantly, the final hour sell off does not bode well for the bulls. Having said that, although, directionally we are still in a ‘Sell on Rise’ market, currently they are undergoing a time-wise corrective phase. Hence, unless we do not see a decisive break down below 10400, it is very difficult to expect resumption of a downward move. If this scenario takes place then we are likely to see lower levels of 10300followed by 10140 quite soon. With a near term view, we continue to remain cautious on the market but ideally we would be convinced to go short only after seeing few days of more such time-correction or a relief rally to retest the higher range of 10640. Probably, first half of the forthcoming week would unfold this suspense and would make the picture slightly understandable.
We reiterate that within this consolidation, one should ideally remain light on index and focus more on individual stocks. At present, the Nifty Bank index is placed around its ‘make or break’ level and hence, one needs to keep a close track of the crucial support of 24780. If any bounce has to come in the market then the only catalyst that can make it possible is the banking index.”
No comments:
Post a Comment