On the weekly close of index options, the Nifty closed down 50 points while the Sensex fell over 300 points. We saw some recovery in financials, capital goods, and FMCG stocks. While the technology sector remained weak.
The market completed the first phase of the corrective pattern at 17890/60050 and reversed back sharply. It was oversold before rebounding from major lows.
As we can see, the stocks have also fallen to extreme levels in recent times, continuing upward trend is more likely toward the 18100/60350 or 18200/60700 levels.
Markets are still in a range and we would see range-bound activity in the market until the market crosses 18270/61000 or breaks 17750/59750.
The strategy should be to sell short at 18200 and place a stop loss at 18270. On the downside, buying is advised between 17900/17850. Place stop loss at 17750/59750.
