Hello,
Another day another fall and we move back to our support zone of 5250. Markets while seeming to probe both support and resistance zones is unable to strongly breakout in either direction. But how long can this cat and mouse game be played when elsewhere, other markets which on longer term we are highly co-related with are falling left, right & centre. Even other BRIC markets are pretty weak. Chinese markets had their worst quarter in many years falling as much as 23% this time around.
For the last Quarter, we were one of the strongest markets if one discounts markets like Colombo and Jakarta which performed slightly better than us. Dow is already below every major and minor averages and hence seeking lower levels as support just does not exist at current prices. Nifty on the other hand still has plenty of supports before we even think of testing the major averages.
As of now the only way to trade this market seems to be to trade a mean reversion strategy by selling at OB situations and buying at OS situations while waiting for the market to show a direction by coming out of the current range bound zone. Supports & Resistances that have been mentioned recently hold good for today too.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
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