Indian Stock Market opened positive for the day. We predicted that short covering rally can’t be ruled out but traders can go short at every positive rally until Nifty breaches 9649 levels and exactly same happened. Indian Stock Market moved positive but was not able to hold and fell down sharply. Traders, who followed advice might have earned huge profits for the day. Finally, Indian Stock Market closed flat for the day.
This Week Indian Stock Market would open gap positive. Technically, Indian Stock Market is still in negative zone. Nifty has formed DOJI candlestick pattern with Stochastic indicator in overbought region and hence there are strong chance of recovery from here. Market is currently in indecisive mode and Nifty would see a breakout above 9622 levels whereas breakdown below 9560 levels. Traders can take a chance to go long from here with strict stoploss below 9560 as the risk is too small. Once Nifty breaches levels of 9560, it would move down towards 9520 levels but until 9560 holds, there is strong chance of recovery in the market. Once Nifty manages to close above 9622 levels, we can see levels of 9645-9684-9700 in upcoming sessions. Overall, trade for week is to go long at dips and book profits near resistance levels with stoploss below support levels. Traders can resume short positions only below 9560 levels for Nifty.
FIIs were net sellers of Rs.764.48 crores whereas DIIs were net buyers of Rs.890.91 crores in cash market for last trading session. Nifty would see strong support at 9560-9520-9500-9470 whereas strong resistance would be seen at 9622-9650-9685 levels. Hence traders are suggested to follow them for good profits.