Out of 226 stocks in F&O Sector, around 40 percent of stocks are in Uptrend, while 40 percent are in neutral position and the balance 20 percent are in downtrend. This represents little bit of weakness in Bull Market. Last week we had a minor correction. NIFTY is taking trendline support at around 5500 which is a psychological figure. If it breaks, the next support is around 5400. What is more, if correction continues, it will most probably be led by Pharma sector, which had quite a sharp run up recently. The stocks to be watched would be Divislab, Ranbaxy and Sunpharma!
The other weakest sectors would be Oil & Gas, Power, Infra, Realty and some of banks. On the other hand, some of the banks and realty stocks are under accumulation and preparing a good base for the next move up.
Strategy: Since market is more or less in a neutral position, either wait for the market to correct a bit and then choose strong stocks to go long or if it goes up to 5700 levels look for reversal indications to go short where your risk will be minimal.
No comments:
Post a Comment