Nifty continued its downward move and is expected to give a bounce at any level below 5700. Lot many stocks have made new 52 week lows in the current downward move and it says lot more pain is left in the system. It might come to test the previous low zone but cover your short positions at any level below 5700 and wait for a bounce to 5790 - 5840 zone.The pain in the system can continue as lot many stocks have hit new 52 week lows in this process and it is not a good scenario for equity investors.As mentioned in the previous chart nifty would complete wave C between 5550-5680 zone and it would start moving up from there on. It can be a process and it is better to stay with high beta banking stocks like YES bank, Dena Bank and Allahabad bank during this consolidation phase. Bank nifty would be the one to support nifty's bounce back as it reached the support zone of 11200-11300 at a faster pace than nifty and this can obviously be a leading indicator for nifty. I had mentioned a target of 300 for DLF in one of the previous posts and i was short of target by about 10 points as the stock reached a new high of 290 in the previous week. The stock is likely to top out close to 280-290 and it would be tough for the stock to surpass the previous high zone.As per the time cycle nifty is going through an important phase from 21-23 March and it can place an interim bottom during these days.
No comments:
Post a Comment