Markets have become volatile for quite some time. Expect some more volatility. Movements totally driven by global markets.
NIFTY : Nifty did move higher to 4,844 last week but instead of doing so in one or two sessions, it took the entire week. The index is now poised below the critical short-term trend deciding level of 4,844.
A downward reversal from here will cause a sharp decline to 4,674 or even 4,570 in the days ahead. Resistances above are at 4,917, 5,024 and 5,067.
Traders can continue to initiate short positions in rallies with stop at 4,930. The short-term bias will turn positive on a move beyond this level.
Medium-term trend in the index is at risk of reversing lower but as mentioned earlier, a strong close below the 200-day moving average at 4,676 is needed to signal that the index is heading towards the next support at 4,538. Minimum downward targets on a strong close below the 200 DMA are 4,478 or 4,400.
Stocks to watch out for :
Apollo Tyres : Targets of 62. SL of 51
IndusInd Bank : Targets of 158 . SL of 142
Happy Investing!
Don’t over trade and also don’t buy in bulk as off now.
