Report

The markets on Jan 28: The area of 5000 according to Nifty provides market good support. LOOKING AHEAD: Even though global markets were extremely weak, our markets managed to close higher as compared to the opening levels on Monday. An intra-day recovery in banking, power and metal scrips helped the market to move higher in the second half of the trading session. According to micro analysis of the Nifty/Sensex chart, it seems the market is still in the process of a pull back mode to the bearish rally between 21200/6350 and 15300/ 4450. The way the market recovered from lower levels it seems there are enough chances the market may cross the immediate highs of 18406/5399.

In that case, we may see the levels of 18900/5600 as there is no major resistance between 18400 and 20000 (5400 and 6000 for the Nifty). As we are in a pull back mode, we should be cautious while trading, that is, we must trade with the necessary precaution. For any long position, the stop loss must be at 17500/5050. Protect all the short sell positions with a stop loss at 18410/5410. There was momentum in banks and auto stocks, especially in two wheeler stocks on Monday. However, the rally was mainly due to the expectation of a positive outcome in the Credit Policy which is due on Tuesday. Our advice is to look for buying or selling opportunities in Nifty or the basket of Nifty heavyweight stocks as sector specific genuine action is still missing.