Nifty Outlook: Market entered a corrective phase, stay light
The eight weeks winning streak finally came to an end and no brainer, the major event ‘Union Budget’ became the catalyst for this pause. The inaugural day of the trading week posted fresh high at 11,171.55; but this was followed by some consolidation with a mildly negative bias ahead of the event. On the ‘Budget day’ we saw some volatility but due to tail end recovery the Nifty managed to reclaim the 11,000 mark. This seemed to have become a bull-trap as the index opened lower on Friday and then continued its selling streak throughout the remaining part of the day. Eventually, the intimidating session ended with a massive cut of 2.33%; posting biggest single day fall in percentage terms after fourteen months (i.e. November 11, 2016).
1. NSE Scrip Code – Tata Steel View – Bearish Last Close – Rs 670.45Justification – Of late, we maintained our cautious stance on the ‘Metal’ space and despite, ‘Tata Steel’ giving series of breakouts, we advised booking longs and going short on the counter. This was mainly on the back of stock reaching its multi-year ‘Golden Ratio’ of 161% around Rs 695 after witnessing stellar moves in last couple of years.
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