Nifty held the support zone of 5630 and is expected to trade higher till 5800-5850 in the month of October with a reversal below 5520-30 zone. Apart from being an expiry day large cap stocks like SBI and l&t are still supporting the upward momentum and that would be a positive factor in the coming days. If we closely observe the large cap names some of them like ICICI bank and Axis bank are facing major resistance at higher levels and it would bring in the possibility of nifty topping out soon close to 5800 levels. Thus any upward move would just finish the target and as a trader one should be shifting the focus from large cap stocks to midcap names espcially in IT and Pharma. Volatility index was showing 5650 -5630 levels acting as a strong support zone and long positions are getting added on every dip as lot of people are left out as there were huge gap up openings.Turnover data is still positive but it seems to be moving to the extreme zone and the previous yearly high of 5630 should be closely watched and as a trader it is wise to close all the long trades below this zone. When we look at the longer term picture the 5450 - 5400 zone would be a strong support zone where nifty could get some buying support when ever there is a downward move and we should see these corrections as much needed consolidation sessions and the market is taking its breathing time before the new up move. The trading range can be 5630-5740.
No comments:
Post a Comment