Whole market is weak, showing strong downward momentum. Nifty has given back the gains made from 10 long weeks of marginal up moves in a short span of 3 weeks. Exceptions are stocks in the Oil & Gas and Reality sectors. Nifty is likely to find support in the 4540-4320 range, but before that there is a likely pullback. Daily charts show minor exhaustion in the prevailing downtrend. A pull back to 4950-5000 levels is a good possibility.
At those levels we have another opportunity to short the market for a next big move to the support zone. FMCG and Healthcare stocks are likely rally candidates along with Oil & Gas and Reality stocks which are in the sideways market, which will enable Nifty to reach resistance zone.
With Union Budget; a big event just few weeks ahead, market will hold range at resistance levels, take directions from budget and resume the bearishness.
Trading on the long side of the market needs target exit. Take first signs of weakness to exit positions on the long side.
Bulls climb by the stairs while Bears jump out of window. Bear moves should be cashed at the right time.
No comments:
Post a Comment