How Market Behaves Today?

MARKETS REMAIN CHEERFUL, TREND IS BULLISH, TRADERS SHOULD MAINTAIN UPBEAT STANCE, BUY ON DIPS AND CONSOLIDATION.

THE BIG NEWS ON WEDNESDAY WAS THE FALL IN IMPLIED VOLATILITY WHICH SAW OPTION VALUES FALL EVEN AS THE NIFTY CLOSED WITH GAINS. FOR BUYERS OF OPTIONS CHANGES IN VOLATILITY HAVE TO BE ACCEPTED AS AN INEVITABLE COST OF MAINTAINING A LOW RISK LONG POSITION.

·         Bank Nifty saw a big up move today and closed higher. Prices are now trading very near to its life time high at 13414. We may see a breakout very soon. Banking Stock as well Index is outperforming the whole market. Look for a buying opportunity in both.

·         Consolidation continues in CNX IT. Prices remained insie its trading range 9200 – 9600 and closed near to its lower boundary. IT Stocks are now consolidating and finding resistance at the top. WIPRO is giving shorting opportunity. As of now, we should avoid IT stocks for buying.

Trend is up in FINANCIAL Sector. Prices have started a process of consolidation at its top. We may see a breakout form the resistance very soon. Look for a buying opportunity in outperforming Financial Stocks like HDFC, LIC, PFC, RECLTD, REL CAPITAL and SRTRANSFIN. 

For getting More details, Please visit http://bit.ly/1lMksO4