The market opened higher and after a mild dip, the market recovered back above the given level 4810. It was the
turning point for bulls when the market broke 4835 level in the second half of the trading session and rallied till 4885
levels. The recovery was sharper than expectation may be due to huge short covering above the same.
However, we can not forget that the medium term trend of the market is still "bearish" and currently what we are
observing is short term pull back move to the bear rally between 5310 and 4675. Today may be the testing day for
bears as around 4900/4920 (16470) levels the market will test the "inner strength" of bears. From these levels we may
expect one more round of profit taking or fresh initiation of short positions. Even the 20 days SMA may act as a
hurdle for the market and may help day traders to short with a short term view in mind.
Our advice is to be cautious around 4920/16470 levels while adding fresh long positions and any reversal from these
levels may again push the market down to 4840/16200 levels.
In case the market opens lower, then the level of 4800/16060 may act as a major support for the market and to move
upward it requires to sustenance above the same.
Nifty Strategy: Sell short around 4900/4920 with a final stop loss at 4956 and the target should be 4845 and 4835.
On the other side if the market opens lower then the strategy should be to buy around 4805/4795 with an upside
target 4845 and 4885 again. Keep a final stop loss below 4775. (spot levels and valid for the day only)
