Last week nifty opened at 6723 again made a new all time high touching 6775 on Thursday but could not hold the new high & corrected to close below 6700 at 6694.
Although nifty has made a new all time high last week, it formed red candles on all the trading days. In fact nifty has made kind of shooting star candle on weekly charts as well indicating some weakness.Nifty made a low of 5933 on Feb. 4. Since then nifty has rallied more than 800 points in two months time almost 15%. So a correction is definitely due. Momentum indicators are also signalling correction. However confirmation will come only below 6670. So i'd recommend going short on the index below 6670 levels for targets of 6640-6590 with a stop of 6715. Low risk traders can buy 6700 put around 75 for targets of 90-125 with stop of 54. On stocks front Axis bank can be shorted below 1420 for targets of 1400-1380 with stop of 1439. Low risk traders can buy Axisbank put around 28 for targets of 36-45 with stop of 19.
Although nifty has made a new all time high last week, it formed red candles on all the trading days. In fact nifty has made kind of shooting star candle on weekly charts as well indicating some weakness.Nifty made a low of 5933 on Feb. 4. Since then nifty has rallied more than 800 points in two months time almost 15%. So a correction is definitely due. Momentum indicators are also signalling correction. However confirmation will come only below 6670. So i'd recommend going short on the index below 6670 levels for targets of 6640-6590 with a stop of 6715. Low risk traders can buy 6700 put around 75 for targets of 90-125 with stop of 54. On stocks front Axis bank can be shorted below 1420 for targets of 1400-1380 with stop of 1439. Low risk traders can buy Axisbank put around 28 for targets of 36-45 with stop of 19.
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