How Market Behaves Today?

MORE OF THE SAME; NIFTY RALLY CONTINUES AS BRICK AND MORTAR STOCKS BECOME FLAVOR OF THE DAY; CEMENT, STEEL, AUTO STOCKS RALLY WHILE BANKS TAKE A DAY OF REST; WAIT FOR CORRECTIONS TO INVEST

WE ARE IN THE INITIAL STAGES OF WHAT SHOULD BE ‘THE MOTHER OF ALL BULL MARKETS’. WE HAVE TO REPEAT THIS STATEMENT OFTEN TO ENSURE THAT READERS SHOULD NOT CONFUSE A CORRECTION WITH A DOWNTREND. BUY ON DIPS, ALL THE TIME.

·        The Bank Nifty broke out from a three week trading range on the upside. But, the higher levels were not sustained and the Index retreated within the range to close almost unchanged. Bank Nifty remains inside a range. The Index is only an intraday trade for buying on sharp dips. Position Traders should take partial profits on long positions.

·        CNX IT continues in a trading range with support at 8900 and resistance at 9050. This range is very tight. A breakout from this range may give us a tradable move in IT Stocks. Wait for a breakout and then trade in the direction of the breakout.

·        Trend is up in CEMENT Sector. We should look for a buy on dips opportunity in CEMENT Stocks: ACC, AMBUJA CEM, ULTRATECH CEM and GRASIM.