“It seems that the market is in no mood to give any kind of sigh of relief to traders/ investors community. There has been several attempts made to give some bounce back move; but, on all these occasions, markets failed due to relentless selling at higher levels. To fuel this, global markets are creating nuisance these days and today too, the gap down opening was mainly on the back of sharp overnight sell off seen in the US markets. The damage was once again got restricted post the opening, but it’s been happening repeatedly now-a-days and hence, bulls may not have any kind of confidence left to interpret this as exhaustion.
Still no respite, wait for further developments
This is clearly a kind of phase when you are left with no clear view and hence, rather than just trying find to any reason, we would rather wait for some kind of development to happen on charts. Yes, we still reiterate that one should avoid going short now; but at the same time, going long (especially carrying overnight positions) does not seem to be a right ploy due unexpected sell off in the global peers. At this juncture, we would rather wait for Nifty to surpass and sustain above the important intraday swing high of 10242. If it manages to do so, then would trigger some immediate recovery in the market. Till then one should stay light and avoid taking undue risk. On the lower side, 10079 has now become a new multi-month low.
The midcap index continues to outperform the benchmark and hence, if market gives any kind of relief move, we may see individual stocks from the midcap universe providing better trading opportunities.”
By: Angel Broking