Hike in Inflation rate, Downgrading Metal, Banking and IT sectors, HDFC's poor number, hits the market yesterday. In fact, previous attitde have shown by any market to correct mildly from any major resistances before breaking out. It is also common for markets to spend some time before deciding the next direction.
Till nifty convincingly close above 5500 this type of flash correction will come. So try to keep your both eyes for all open positions and exit at the slightest of weakness. Since preserving capital is more important than earning profit within this range. Market will test our patience for the next few days. Try to trade carefully. If possible, use option to minimize our risk till the proper breakout above 5500.
FOR TODAY: Nifty future closed below below the breakout point of 5400 which can either be a breakout failure or a normal small correction after the gains of previous four days.
Indian equities are likely to openon green (around 25 points up) today. SGX Nifty is trading at 5412 (at this time of writing), 30 points higher than Wednesday closing of 5,382 indicates the upmove opening to cover yesterday's loss. If any negative news from Global as well as result counter not coming, again nifty future will try to touch 5450 (yesterday's high was 5453.85). Market may also be volatile today.
TRADING RANGE PROBABLY BETWEEN 5379-5450. Will update when market opens.
