We recommended our day trading system users to keep short positions till Nifty reaches at least 5320-5330 level.. A close above 5412 can be a sign of bullish trend resuming. We have seen in Friday's market Nifty shedding almost 70 points from its day high due to CAG report . This clearly shows bears are ready to take a hold when a negative news spreads.
Why should I keep my short position?
1. A technical resistance seen at 5400.
2.CAG report may cause hard debate in parliament for this week.Whenever Government under pressure market reacted badly in past . 2G scam debates are examples we have.
3.During last 4 weeks index was gaining . Nifty rise more than 6% in these period. So a profit booking can be justified at this level.
4.Current rally was due to heavy FII inflow. If CAG report debates causes a halting of fresh reforms, FIIs may exit for a short term. This will make decline of at least 3-4 percent .
5. Last weeks Inflation figures may be adjusted upwards. Because fuel based inflation may be higher in coming months. Overall decline in monsoon is expected to make vegetable prices high.
6.RBI may not cut rates aggressively as they will wait till August numbers to come out.
7. July consumer price index will be announced tuesday and it will be a key driver for the market.
8. Overall I advice investors to cautious at this levels as we did in last week.
On Tuesday we are not initiating a Buy. Market may get a support at 5350 level. If it breaches next support is at 5317. watch these levels care fully.
Disclaimer
The information and views presented in this blog are prepared by Brijesh Maniyath. The information contained herein is based on analysis and upon sources that I consider reliable. This material is for personal information and I am not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, shares ,options or futures.
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