The market snapped six-day losing streak and rebounded sharply to close above 11,000 on the Nifty with more than 2 percent gains on September 25, the first day of October series. The reports of likely stimulus package from government ahead of festive season lifted sentiment.
After looking into some of the global indices, it is evident that markets are on short term support and may enter into a congestion zone.
Nifty has exactly fell to its 23.6% retracement from the top to 10980 levels, from there it bounced 244 points on Friday. This I believe that there is short term bottom in place.
Bank Nifty has some confusion, though it took some short coverings on Friday. We have to see 20400 is protected for short term in the week.
Some of the world Indices which are all at some crucial zones
We have to see some more short coverings till the levels of 11250-11300 on Nifty. If that is taken off consistently, then the trend looks strong. The biggest hurdle is 10600 which is acting as a strong resistance for now. Otherwise, there is always a probability of Nifty slipping towards 9600-9650 on a much longer time frames.
Advise: Take longs cautiously and keep booking profits on Individual stocks. and wait for much stronger pullback above 11600. Until then markets are entering into a congestion zone of 11250-11300.
For daily trading recommendations and index strategies, do get paid subscriptions https://streetgains.in/Subscribe/
- Santhosh Kumar V