We said ‘Technically the market has seen a good bounce after a prolonged down move and it is but natural that short traders tend to book profits near the previous bottom, and so a bounce should be taken with a pinch of salt. Market strength is determined not by short covering but by actual buying and I don’t see that as yet on the charts and so anything that goes up now is still a suspect to me’

The market climbed up and gained some appreciation but that seems more to do with the short covering than actual buying and has managed to stay put in the upper sideways region which can be viewed as a consolidation from a higher time frame point of view but then the market has to stat put here in these regions to confirm that.

Technically the up move is still intact in the zone of resistance where profit booking is the order of the day specially in the week of an F&O expiry, where we have a truncated 4 day week ahead due to a holiday on Friday next and if we find any up move then it could be limited.

The supports are at 8710 and resistance to the up move is at 9213

The supports on the way down are at 2723 and resistances on the way up are at 2938

From a trading point of view not much fire works are expected on the long side but profit booking can come in and if that happens then market could shed some weight here.

source: Prakash Gaba

Tags: calls, daytrading, free calls, intraday, tips

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