Nifty broke all the support zones and is heading towards 5530-5560 which can be the immediate target in the short term. Majority of the large cap names are heading downwards but as these stocks gave signs of break down much earlier it is better to book partial profit anywhere below 5600.It is wise to watch whether nifty futures is getting support below 5600 zone and then try going long in nifty as there is no point in catching a falling knife now. Anything that falls will give us some time for accumulation and let people start accumulating stocks and dont jump to initiate long positions.Volatility data is showing new short positions in stock futures than in nifty. As expected the rate sensitives lead the fall and it is better to avoid PSU banking space from the buying list. Turnover data is showing that the participation was low but the institutional traders have emerged as sellers in the equity market. Lets watch for 5-10 of November for an interim bottom to be formed and till then i would not be a buyer as long as some support zone emerges.The trading range can be 5580 - 5660.
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