Nifty could never sustain above 6350 nor bank nifty above 11200 levels. It tried breaking above the resistance zones but it could never attract any follow through moves. As i mentioned before the under performance of midcap and small indices remained a worry and the picture became more clear after Fridays fall. Dollar/ INR has given a fresh breakout above 62.50 zone and we could see 64 zone within a short time frame and the actual trade lies over there. In nifty we are again reaching close to the much talked support zone of 6150. It can hover around the support zone for a short time but the gut feel says that it could correct till 5850-5900 in the medium term.As i mentioned in the first post of 2014 it is logical to believe that nifty has formed a short term top and it is time to get out of high beta sectors. Thus wait for the market to settle down or to come in a discount for a short term bottom. It is better t o go with long Dollar strategy as that is the most logical trade at this juncture as all the other stocks and indices are coming down to complete their retracement targets. The most preferred stock at this juncture would be PFC around 120-125 zone if there is a sudden sell off in the markets. The undertone in the market says that dollar is coming up to test the highs or just a rise and nifty is coming off from the highs for a retracement pull back and select the stocks accordingly.
