NIFTY on the daily chart was in non-trend; today's indecisive move on the index has rendered the hourly charts too in the non-trend zone. Until NIFTY settles down and break out there is no point in trading NIFTY. Traders with deep pockets may venture to test the trend, please maintain very low risk.
There are very low volumes on almost all the indices and that is the reason the market is swinging on the either side everyday. Smart money is off the market on a brief holiday.
All the SECTORS closed weak today, the leader on the fall was TELECOM followed by UTILITIES and then with BASIC MATERIALS. There are still few bullish Industry groups which have the potential for some long trades. Some of them are Leather Products, Cement, Cement products, Pesticides and Agro chemicals, Cycles, Tires and Lubricants, Leasing and Hire purchase.
Identify the outperforming stocks of these indices, wait for them to retrace to value, and then give an uptick, only then trade long. Caution is needed on long trades now are the broad market is weak and non-trending.
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