Zee Business Managing Editor Anil Singhvi said today that he doubts whether this bounce back in the markets will sustain. Singhvi said that he is certain that the rally will not sustain. Singhvi said that after sharp selling witnessed in the markets, the bounce back in markets on account of short covering will again encourage some selling at higher levels. The range in which traders should short the markets is 14500 – 14575. It will not be possible for markets to move up towards 14800 – 14900 directly, volatility will remain.

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Singhvi said it is difficult to say whether Nifty from lower levels of 14250 will move towards the higher range on the upside. Traders can trade in their long positions with strict stop-loss.

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Singhvi said traders who got stuck in yesterday’s trade as there was a gap down on Index and major stocks, they can use the short-covering in markets to exit their positions. It would be a golden opportunity for them to book profits if they had entered at lower levels or limit their losses if they entered at higher levels.

Singhvi said that if the market trend is bearish and the market remains weak, then it is possible that the rally may fizzle out near 14450 level on Nifty and then it may drift lower than 14250 as well. However, if markets recover till 14500 – 14575 then there is a good chance that 14250 levels can hold on Nifty.

Singhvi said tomorrow markets are closed, Thursday will be the expiry  and there are many triggers n Domestic market which will be important to watch. Numbers from FII’s and Covid cases will also be watched closely.

Singhvi said that traders should be disciplined and should take each day as it comes. He said following the key levels is extremely important for traders. Investors should grab the opportunity to buy quality stocks at lower valuations in this fall. They should take the benefit of the fall in the markets and buy their favourite stocks within their expected price range.