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.