Posted By : Kishore B.S
The morning started with two shocking news – Chinese GDP data came less than expected and bad Infosys numbers. The market though held for a major part of the day trading in green. But it suddenly broke down and in a few minutes was down 80 points. Nifty is clearly in a trading range of 5180-5350. So, shorting the market at this point of the time is not a wise decision.
Of course, all the global and domestic factors are showing weakness but for Nifty has bounced back from 5200 levels quite a few time. So, no shorting should be done until Nifty breaks 5150 levels decisively. One can go long with a stop loss of 5150.
The European markets are down 1% on the back of weak European and Chinese data. The woes of Spain are not helping the problem either. Now we have a weekend. So, next week will be a fresh week and some bullishness can be their for a few days. RBI policy is coming on 17th April, Tuesday, and their are huge expectations that RBI will finally start cutting rates. So, their can be a rally in the market on Monday on this expectation. Still the upside is capped at 5350. The call here is definitely to go long with a strict stop loss of 5150-5130.
(Inputs Mr. Shubham Deva, A Stock Market Institute Associate, IIT Kanpur)