Down Gap opening of 1% on the Index today. Though the nearest support was breached, there was no close option for exit and reversal to short. Risk/Reward was not favorable for short trades. Price took support at 5160 levels; the index is not likely to give good gains on the daily charts.
Bullish moves of which took close to one month to form was washed away in just 3 trading sessions. Bears jump through the window is always right. Market is bound to continue in a broad sideways pattern for some more sessions before a break out in any direction.
The fall was predominant in the ENERGY Sector which has recorded an above 2% drop. CONSUMER SERVICES Sector stayed put, it has managed to come out breakeven today. Though there was small weakness in the constituent stocks, ZEEL being positive pulled up the Index. Most of the stocks in this sector like TITAN, SUNTV, INDIAN HOTELS are yet to give confirmed bearish divergence on the weekly charts. If NIFTY has a pull up again from here, it is the stocks in this Sector that is going to be the stars.
Add the services sector stocks to your portfolios on upticks. SUNTV & TITAN can be put into close watch.
ENERGY Sector has lost its shine. Any adverse news in the market, they are the first to react, though they are not related to the news. This shows that whatever up moves these stocks show are all false, reactions can be steep.
BASIC MATERIALS Sector followed the weakest sector today; it was Steel, Pesticides and Paper industry groups that pulled down this index. Paper industry was the star in the past week. Any weakness here is accumulation opportunity. Watch BALLARPUR & TNPL here.
Telecom Equipments Industry showed big weakness today. There is opportunity here too. Watch SIEMENS, get in on an uptick. It is a pretty strong stock to trade long at this moment.
Weakness in the Shipping Industry, hit our ABGSHIP to exit on stop trigger.
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