NIFTY - PROCEED WITH CAUTION
Updated
Nifty has shown good bounce after a heavy sell off. However, it has now taken resistance at 0.618 levels of 19,840.
With results season kicking in, and another lukewarm IT season looming, Nifty seems to take a pause. With rising uncertainty in the Middle East and FOMC's strong hawkish stance (FOMC minutes will be out tonight), the index is likely to stay sideways to bearish for a few sessions barring any new significant developments.
No fresh rally is expected unless it takes out 19,840 on closing basis.
With results season kicking in, and another lukewarm IT season looming, Nifty seems to take a pause. With rising uncertainty in the Middle East and FOMC's strong hawkish stance (FOMC minutes will be out tonight), the index is likely to stay sideways to bearish for a few sessions barring any new significant developments.
No fresh rally is expected unless it takes out 19,840 on closing basis.
Trade active
Nifty positioning itself as expected, and even though in-line or better results from IT companies like TCS & INFY, the buyback and guidance have played spoilsport.Making It worse is inflation data coming hotter than expected (US), increasing the odds of another rate hike.
Tread lightly
Trade closed: target reached
The view has worked out well, nifty has been sideways with a little bearish sentiment. With HDFC Bank's results out, expect a good gap up tomorrow. Closing this neutral view. Hope it helped
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