It made a new low at 4900 and tried for a bounce back but could not sustain at higher levels. On every rise lot of short build up is happening but it is giving time to square off all the positions at lower levels.On the upside we could see some of the buyers are getting trapped at 5030 and 4980 levels. If there is any rally on the upside i expect these buyers would get a good opportunity to exit their long positions and the upside will get capped around 5050. In the previous week we have seen nifty getting stopped twice around 5050 region and the zone should be considered as an important resistance zone in the days to come.After some side ways move it is expected to trade lower till 4800 with a short term trend reversal placed at 5050 -5060 levels. Bank nifty has also come down to 61.8% Fibonacci zone and instead of searching for short selling ideas it is time for investors to look for buying opportunities in banking stocks.There may be quite a few weak banking stocks like Canara bank, Union bank and Bank of India but wait for decent bounce to go short in these weaker names.As mentioned in the earlier post Dow is at a crucial support level and it could be broken any time, read the U S markets along with the Indian equity market. If you are an investor breaking of 4900 would give you attractive buying opportunities and wait for selling climax points to get into banking stocks. Lets keeping a range of 4900 - 5030 as the weekly range.
Hi Vinoo,
ReplyDeleteYour call of Orchid absolutely rocked...gr8 work..
Thnx
Vijay kumar
Fb Vijay Financials
Thanx buddy ....Hope you are doing good
DeleteHi Vinu... Just as a possibility... What if the entire rally to 5600 levels in Jan/Feb was just a bear market rally? Wouldn't that mean that sometime in the next 1 - 2 months we would break the previous low i.e. 4500 odd and go much below that? Seeing the global macros esp Europe and even China to some extent, there seems like a very good chance of that happening? Would love to hear your views on this and if you agree then how should we position ourselves for such an event?
ReplyDeleteAnd yeah... great call on Orchid... Unfortunately I didn't go short as recommended so missed a great opportunity... :((
It was just a rally to suck retailers money and it is quite possible that nifty would retest the lower zones of 4500. If you are only into stocks trading, 4500 or 4600 is not a matter of concern because if we look at the bear market cycle it has been quite long and stocks would not get cheaper like this in the near future.Anyway i'll try to update my views on nifty through the blog and thanx for being a regular visitor
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