Nifty spent the day below 5400 and is expected to trade till 5300-5330 levels with a resistance close to 5410 zone. The day saw some big downward momentum in stocks like Jindal steel, ICICI bank and Axis bank and the scenario does not look good when the stocks are crashing like this. We could say nifty is coming down due to short positions and some profit booking but the short positions in stocks would be a major threat for nifty to move up. Stocks like SBI and the biggies from infra are looking the weakest of all. Turnover data is showing lack of interest by retail investors but nifty is expected to maintain the tight range of 5300-5400 till expiry.Volatility data is showing the addition of short positions close to 5380 levels and 5400 calls have to watched carefully for further moves in nifty. It would be a waste of time trading nifty in this tight range and stocks are giving much better trading opportunities at this point of time. A further dip could be followed by a bounce back close to 5300 and and that is where one needs to look for a bounce back. The trading range can be 5310-5390.
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