04 January 2013
Equity market
NIFTY struggles to take out immediate resistance at 6015-6040 and is already into “correction process” with immediate objective at 5940-5965 which should hold to retain bullish undertone. Indian equity market has already taken into account all positive cues from domestic factors such as possible turn-around in growth, shift into rate reversal cycle while concerns on twin deficits continue to stay valid. The strong support from off-shore investors may not be very relevant post FOMC’s hawkish comment on extension of abundant liquidity regime. Domestic investors continue to stay in wait-and-watch mode in expectation of clarity on resolution to weak domestic cues and timing of rate cut action from RBI. For today, let us watch consolidation at 5965/5980-6015/6040, break-out if any to stay within 5900-6100. The trading strategy is to trade end-to-end. Strategic players can stay away for break-out of 5965-6040 range for trading actions. It is good to buy in 2 lots at 5945/5910 and sell in two lots at 6055/6090 (as counter trade) with tight affordable stop. Strategic players who are already “long” at 5880/5840 can place trail stop order at 5980 and prepare to reinstate at 5945/5910 with stop below 5900.
Have a great day and Good luck...........................Moses Harding
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