On the weekly charts nifty has moved into a tight sideways range. A break of 5135 will take the index to a fresh bear phase. Most of the index constituents or either bearish or in the sideways mode at present barring very few stocks that are in the bullish territory. On the new high new low index though there are a good number of new highs getting recorded everyday, there are a equal number of new lows too. This signifies brad based in decision in the markets.
On the daily charts though lower resistances are being formed and volume is showing large levels of decline. It has been more than a month that the Nifty has been in the side ways range. 14 stocks among the 50 constituents on the Nifty are trending bullish, that is 28% of the stocks that are bullish.
With the markets being in the state that they are, there is a high likeliness of having large number of whipsaw trades. Traders are advised to be highly selective on their trading picks, largely stick to their trading and money management rules to have a decent profit from trades. Banking stocks are showing strength, some of the prominent ones that had entries in our pull back section of recommendations have been doing well. One of our picks, MUNJALSHOWA had its target reached int he pull back trade recommendation.
Trade cautiously, make consistent profits, be happy with what the market provides, if we go greedy, we will be the loser at large.
Happy trading.
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