Hello,
The first day of the week after the breakout turned out to be lackluster and market weakened quite a bit. Breadth of the market was exceptionally negative with the NSE recording 386 Advancers vs 959 Decliners. Markets seemed concerned over the result of Maruti and with Reliance reporting its results today along with the announcement of Credit Policy by RBI which too is scheduled today, markets seem to be on a wait and watch mode.
While the breakout is still valid, one has to be open to a proposition of the breakout being a failure. This would essentially not tie us down to a bullish scenario but keep us in the rut for a bear trade as well. With just 3 days left for expiry of the July settlement, it seems very unlikely that we shall move beyond 5500 nor move below 5300. Nifty closing below 5400 would confirm a failure of the current breakout setup and provide us with a bearish trading opportunity.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
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