The negative news of another financial scam involving LIC housing gave fillip to the negative direction of the market and after being range bound 40 points from yesterday's close price, Nifty tanked after 2:30 pm to break the 5820 barrier and fell to 5780 levels. VWAP at close is 5855 and Nifty November series closes near the day's low @ 5799 after a life high closing of 5312 earlier this month.
1) Now, December series begins on a negative note and the first week will be very volatile in search of a good support. With negative sentiment in the banking/real estate sector, short sellers are in full control, till some positive development does not set in. Global cues have been positive over the past two days, but domestic news has led the market down.
2) Broad range of trading for Nifty in December series will be 5555-5680-5966-6085-6165 levels. With volatility being so high, intra day play gives better chances now to take trades when appropriate levels arrive with early entries and exits when trend favors the direction of the trade.
3) The financial irregularities happening in the most trusted government institution LIC will make investors hungry to invest in trusted companies. No wonder Infosys stood tall today amongst the ruins of a totally negative market and that was the best indicator early in the morning for traders today to go short on the index and long in Infy. Trade safely! Happy trading!
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