Nifty futures did not break the immediate support zone of 5200 and bounced back from lower levels. Though it was a meaningful bounce back one could see the first sell on a rise to 5330 zone. We need to get a clarification of the up move by nifty futures sustaining above 5330-5360 zone because that is where we could see lot of short positions lying. Thus no need to catch the bottom if it comes down once again because a fall to 5200 zone once again will damage the structure in a different way. On any up move metal index should have an upper hand than bank nifty and we could not see that activity on friday. Metal index closed on a negative note and nifty cannot move up without it. Bank nifty too is holding the support zones and now we need some time for the accumulation process for any up move. As per the time cycle nifty could remain in a range till the end of march and a rally can be expected from April 1-10. On the upside it is still trading below some important moving averages and 5350-5360 levels on nifty futures would be an important zone to watch out for. If Dow is ready for a secondary rally before any down move we could see some good moves in nifty too.In the metal space though copper is still trading with a positive bias a new low in nickel and up move in crude oil is really a matter of concern for bulls. I would like to go long only if nifty could surpass 5330-5360 zone on the upside. On the downside i would like to wait for a deeper cut to start some fresh investments, thus wait for the cuts for fresh buying and no need for any aggressive short positions , may be you need to wait for a little more but the risk - reward ratio would be in favor of an investor in the longer time frame.
No comments:
Post a Comment