Nifty made a new low below 4900 and
it was really a disappointing session for Indian equity market as the trading
got stopped after 1.30 p.m. It made a low below the immediate support zone of
4900 and it is expected to trade till 4800 on the downside. Though it can give
some relief rallies I don’t understand why it should come up in the near future
as there is no good news in the market. It is always the pessimism that gives
an opportunity for a bull market but even if the market discounts some bad news
there should be good amount of positive news for a sustained rally. In the
longer run it would be a good opportunity for investors to do some shopping in
equity market and I would like to be a buyer in ICICI bank close to 650 – 700 level.
As an investor one should show the courage to pick some stocks at heavy selling
days and technically we call it as selling climax. Dollar and U S markets are
on the verge of a break out and these things could trigger a major sell off in
equity markets. Thus ideally it is not wise to short in the market below 4900 if
there are no decent bounce backs. Bank nifty made a new low below the important
Fibonacci zone and it again tells you that there is some more weakness left in banking
stocks. Though the ideal target still remains 4800 if you are not experienced
options trader it is better to stay away from nifty. If nifty starts coming
down stocks like Axis bank and Union bank are expected to lower.
