Nifty held the range and RBI policy could give nothing special but a volatile session for nifty and banking stocks. One could see the 'climax of dead cat bounce ' of junk stocks like SBI and nifty would face resistance at 5250-5270 on the way ahead. These levels are crucial as nifty started its downward move from there. If we look at the turnover data it is evident that it is a liquidity driven market than fundamentals but bank nifty is not supporting the positive momentum especially in metal stocks. If nifty is able to cross the upside resistance the only hope for bulls would be the out performance of Reliance Industries. The stock has been consolidating in a range of 720-740 for quite a while and it is on the verge of a break out above 745 levels. As the consolidation is happening for the past three months it is wise to respect the time it has spend on the downside and the stock would be a decent bet than nifty for any upside move. On any upmove we could see a drop in the volume in nifty futures and i would continue to bet in the same range of 5140-5270 till bank nifty gives a break out on the upside. Volatility data is showing some short covering happened at lower levels and any downward move would be becacuse of fresh short positions and this could really move the volatility index on the upside.
( Chart - Reliance industries )
A rise above 745 levels could take the stock to close to 800 levels. We could see a positive turn around in the volume and price pattern is telling that the consolidation phase is about to gt over. Any dip between 720-740 can be a buying opportunity for short term investors. As a trader i would like to keep 20 points as stop from the buying level.
No comments:
Post a Comment