Nifty held the resistance zone of 5730 levels which is close to 78.6% retracement of the entire fall. It is expected to trade till 5850 in the month of October with a decent support close to 5520 levels. The short term corrections would be much needed for a structural bull market and as long as nifty maintains a higher top higher bottom scenario things are clearly in favor of bulls. Bank nifty is leading from the front and it would be an interesting situation for nifty to build up the confidence level. Fund managers are really churning their portfolio between banks and pharma stocks and the scenario is visible if we have a look into the stocks. Volatility data is showing some short build up close to the resistance zone and nifty might take some more time before any valuable upmove. As i said in the previous posts one should be booking profits in high beta counters and reduce the portfolio beta at higher levels and it is time to rethink about stocks in the IT sector too. Turn over data was in favor of bulls and the foreign institutional traders are really utilizing the opportunity to create long positions in equity market.If there is a consolidation phase it would be logical to assume that the rally is not over yet. At 5800-5850 the cash inflow would get stretched and that would be the ideal time where i would re look into the positive momentum in nifty. The trading range can be 5630-5740.
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