Hello,
Yesterday was a day of lacklusture movement with the Index unable to pierce through the 5475 resistance. The breadth of the market while closing positive lacked substance since even in mid caps, there has been no continuity of trend making it hard to trade stocks. The only sector which seems to show a huge divergence is the Banking Sector which is on its way to test the all time high (for Bank Nifty) and the one sector that is holding up the Nifty despite weakness in other sectors.
Nifty Put Call ratio fell to 1.25 and India VIX at 17.55 is very close to the April lows which is also the all time low for the Indicator. Both these indicators are contra indicators in effect meaning that while everyone is looking for a higher breakout of Nifty, the Put Call Ratio & the Vix seems to be indicating a probability for a downswing.
As has been emphasised here, any fresh long or short positions are better initiated once we move outside of this zone since the risk reward ratio does not seem to justify otherwise.
Regards
Prashanth
Mythri Stocks & Shares Pvt Ltd.,
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