Overall, the market has seen huge downside. Before this recent downtrend, we had predicted the volatility to move high and this is very much visible in the markets now.
Overall, the volatility is likely to play its role over next few days. Nifty has broken crucial level of 5700 spot levels also.
Target of 5580-5450 spot from current levels is not denied.
Remember, shorting at current levels is not likely to fetch you much returns especially in case of a bounce before the possible fall.
Before a week, we indicated a cause of concerns for those holding long positions. The mentioned support (last week) of 19400 has held with today’s low of the day is 19416.94 level. Again, we repeat the current consolidation phase has stopped some of the major buyers to stay away from markets.
Any bounce of 2% in main equity indices should be used as an opportunity to go short. Volatility is likely to increase over next few weeks.
Nifty hasn’t been able to sustain above 6000 spot levels which should be a cause of concern for those holding long positions. Overall, the uptrend has softened a bit which has not been truly dominated by short sellers till now.
The phase of consolidation has kept some of the major buyers away from buying in around 6050-6100 spot range – in short run. This has been directly visible in the market movements.
In the coming days, traders need to see whether BSE Sensex succeeds to hold above 19400 levels or not.
With NSE Nifty closing above 6000 spot levels, new buyers may come into the market to participate in the rally. On a cautious note, one must note that India’s equity market had a more than a decent run in recent times which may cap upside for the very short-term perspective.
Last time, we stressed to hold long positions when BSE Sensex was at 19324 levels (today’s close is 19765). Traders holding long positions in the period would have seen MTM (mark-to-market) moving favorably. Sometimes, it helps to hold a position for few days.
Sensex has crossed 19600 levels successfully. In coming days, some resistance in the zone of 19830-19900 levels is likely to be seen. Sensex has good support at 19450 levels.
Market has seen sideways movements in recent times. We believe the market is likely to have limited upside potential at least till the time 19600 levels are taken-out on upper side in BSE Sensex.
Anybody focusing more than short-term should hold on to long positions. Be invested in select stocks to gain or outperform the markets.
Good support is likely to be seen at 19100 levels in Sensex.
Market had traded sideways for few days. Selling pressure has been trying to reverse the trend as buyers are not able to support the recent uptrend with ease.
Sensex has support at 18980 level and has resistance at 19600. As we wrote before 6 days, crossing 19600 is likely to remain a challenge.
As stressed previously, the Indian equity market is likely to see sideways movements. We believe this trend will continue for few more days.
Sensex has strong resistance around 19600 levels which is likely to remain a challenge to cross.
Sensex support is 19200 which shall provide some belief to buyers.