Nifty held the support zone of 5640 levels and is expected to trade till 5750 in the short term.For a nifty trader anything less than 50 points move should not be considered as valid and it is still well within the range. Some large cap names gave a short covering rally but i would like to use this as an opportunity to exit the long positions. As said in the previous posts there would not be any hurry to build short positions and get into stocks like LIC housing and WIPRO with a 10 points stop from the buying levels. 235-240 and 340 levels would be decent support zones respectively and i dont expect a major downward move from these levels.If we look at the chart of S&P it is also well within the range of 1425-1455 where we could see lot of consolidation happening and dollar index would still be a major threat for nifty for any up move.Dollar/INR would be forming a symmetrical triangle pattern which could usually form a range bound market within 52.5 -54 for a month or so. Though the the range is a little bit large it would provide much room for option writers to sell out of the money options in the currency market.As of now the range for nifty is well defined and it is getting decent support at 5640 levels and getting resisted at 5740 levels sustainable performance by large cap stocks could lead to some more upside. Though the stocks are performing i dont see any reason for stocks to perform at the end of the current expiry season.Turnover data is still at a very low level and we could see that instead of delivery based buying short covering is triggering quick up moves which are not reliable. Volatility index is showing that it is at one of the lowest levels in the history and any major up move could reduce it further which can be a threat for the up move.In a nutshell just accept the fact the range bound market is still active and one has to patiently wait for a major break out on the upside for any buying positions.
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