Nifty had a gap up opening and it is expected to trade till 5850 with a support close to 5450 in the medium term. As a short term target we could consider the previous high of nifty and traders should take out some profits at higher levels.The turnover was really good and an up move in price with increased trading activity and it shows that any dip in the market would be bought into. Volatility data is showing some short build up at higher levels and it would be a good signal as of now because it cannot be 12-13 when nifty s trading at 5600 levels. Though it shows some consolidation could happen in many of the stocks but as a trader one should not try to go short in the market. I would read this rise in India VIX as a trading strategy by institutional traders to hedge the positions by writing out of the money calls. Pharma sector will have a consolidation phase and the upmove in banking is expected to continue after a consolidation phase and it is not a good time to create fresh long positions.
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