Yesterday the markets moved in true spirit to the slogan buy on dips and sell on rallies, just when everybody thought of selling around the lows, the Indices bounced back during the last hour of the trading session to close slightly on a positive note.
Like I have been reiterating time and again, this markets are inline with the above mentioned slogan, unless the range spectrum of 6000-5980 is broken down and 6098 broken out on the higher side.
The charts are Indicating the same signs of range bound momentum with lot of volatility ahead of the key RBI policy meet on the 29th of this month. Given the course of the momentum the participants are pitching for a rate cut of 50 bps this season, which the RBI is unlikely to relent to.
All said and done, it would in the best interest of traders to take only momentum swing trades and those who dont have the art of trading, to sit on sidelines, with cash going with the popular slogan Cash in King………
Inputs: Mr. Hemanth.V, Faculty TA, Stock Market Institute – Bangalore)