After breaking major resistance of 5175 (17300), Nifty went up to 5400 levels. That was a typical Bull Trap and as I mentioned in my earlier blog, that was the last chance to exit equity market. Since August 2011 Dollar has appreciated against Indian rupee by almost 18% and hence foreign investors had to exit from Indian equity markets. Once Nifty breaks 4667 (Sensex-15652) we will get confirmation for next round of sell off.
Since the sensex has started, whenever it has broken previous years’ low, it has corrected at least 15% from that low. Previous year’s low for Nifty is 4667(Sensex-15652). Once that low is broken we can expect at least 15% correction till 3960(Sensex-13300). So every bounce back is a shorting opportunity. Now 4940 is a major resistance, one can go short around that level with stop loss above 5080.
Following Sectors looking weak on Charts:
Capital Goods, Metals, Power, Real estate, Oil & Gas, Midcap and Small Cap
We may see profit booking in following sectors:
Consumer Durables, IT, Banking & Health Care
Following sectors will Out-perform the market:
FMCG & Auto
To conclude, every bounce back is selling opportunity. One can go short in Nifty around 4900-4940 with keeping stop loss above 5080 for the target of 4680, 4400, 4200 & finally 3800. PLEASE DON’T BUY ANY STOCK IN HURRY. Happy Trading!!!!!!!
Since the sensex has started, whenever it has broken previous years’ low, it has corrected at least 15% from that low. Previous year’s low for Nifty is 4667(Sensex-15652). Once that low is broken we can expect at least 15% correction till 3960(Sensex-13300). So every bounce back is a shorting opportunity. Now 4940 is a major resistance, one can go short around that level with stop loss above 5080.
Capital Goods, Metals, Power, Real estate, Oil & Gas, Midcap and Small Cap
We may see profit booking in following sectors:
Consumer Durables, IT, Banking & Health Care
Following sectors will Out-perform the market:
FMCG & Auto
To conclude, every bounce back is selling opportunity. One can go short in Nifty around 4900-4940 with keeping stop loss above 5080 for the target of 4680, 4400, 4200 & finally 3800. PLEASE DON’T BUY ANY STOCK IN HURRY. Happy Trading!!!!!!!
