Posted By : Kishore B.S
The market was in tight range today. Neither the bulls nor the bears could take control. The European markets are deep in red because of the talks between Italy government and the labor union. In the past there has been a lot of talks in the European Union and at the end the outcome has been positive. So, I expect the same case here also. At the end a positive outcome will come.
The America futures also point to a soft opening. One should keep in view that these corrections are healthy for the market. There is no need to panic. These corrections are a very nice opportunity to buy fundamentally strong stocks. Nifty has shown very strong support at 5240. If we see the short term trend its a bit on the downside but the the market is bullish right now in long term perspective.
For tomorrows trade, because of the global correction Nifty might test 5170, which is the 200 day ema. Nifty will try to cover the gap till 5217 which was created last week. A very sharp pullback can be seen from these levels. All those having long positions need not panic. Just have patience and hold on your positions. Markets will again rise very soon. One can short the market with a stop loss of 5330. But my personal view is to go long at every correction. One should see the bigger picture and should not try to time the market. Sit high on cash and keep buying on every dip. This should be the strategy.
(Inputs: Mr. Shubham Deva, An associate of Stock Market Institute, IIT Kanpur)