Nifty continued its journey to the downward channel and it is expected to find some buying interest close to 5650-5700 zone and thus it is time to close the short positions and wait for the budget drama to get over. The correction was inevitable but the midcap stocks were butchered and it is better to stay away from that space. Except a few private banking stocks nothing else is looking good at this moment so don't try to catch the bottom. DLF is the only out performing name in the real estate space and stock is expected to cross 300 in the near term and any deep correction like this one can buy stocks like DLF as a short term bet. Base metals got hammered in the commodity space and we could see the result in equity market too. Stocks like Axis bank, ICICI bank are yet to find a bottom and bank nifty too can find some buying interest close to 11400-500 zone.Till 5650-5600 holds we could say it is a normal bull market correction and it was reasonable as it is logical to assume that any market moves with retracements and pullbacks.Options traders are advised to avoid buying contracts ahead of the budget day as the IV's are expected to come down drastically ahead of the event.
