Nifty did one more low around 4950 which is considered to be an important level in the long run. Some of the major large cap banking stocks like SBI and AXIS bank are in the oversold territory and wait for a bounce for further short build up. Price correction is a little ahead of time correction and if it corrects further to 4800 without a bounce one should definitely search for buying opportunities.As per time cycles the actual dates are lagging and the price levels are leading thus a quick bounce is not ruled out from any of these lower levels. After some major relief rallies it is expected to trade lower till 4800 in the short run. Lets wait and watch whether the rallies could extend to 5050 or 5100. If it breaks down tomorrow itself we could see panic bottom in many stocks and in that case investors should have the mind set to do some shopping in equity market. Volatility index was still on a rise but decreased marginally during the final hours of trading indicating some short covering happening at lower levels close to 4950.Lets keep a range of 4910 - 5050 and use the upper bands as levels to exit.
Upper band is very much obeyed.
ReplyDeleteNifty high made is 5045. Nice one
Thnx buddy
ReplyDeleteHi Vinu... I chanced upon your blog last month while searching on Google nd have been following it since then. Great stuff!!
ReplyDeleteYou mentioned yesterday that Axis Bank is oversold nd we should wait for a bounce to go short... it rallied to 990 plus today... at which point I entered a few lots of May 900 PE @ abt 14... Could you please advice stop loss nd exit levels if it's not too much trouble??
@Deepak....i expect Axis bank to retest its low close to 950 and the corresponding level of bank nifty would be around 9200. Thus you can square off the put today itself as volatility would be in your favor and you might get stopped out only if Axis bank moves above 1000. If i would be a buyer i would make use of the volatility and exit the put today itself ..Hope it helps.
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