The status quo remains!
One more trendless day!
Nifty after falling almost 70 points after PM Modi announced transparent taxation but recovered and closed just a tad lower than yesterday at 11300.45
Nifty pharma was at the receiving end after the stellar rally while Nifty Media, Metals, and Auto stocks gained.
Levels remain the same as yesterday. A decisive break above 11350 will take Nifty to 11450-11550 zone while a break below 10850 will be hugely negative.
India VIX is oversold on a short term basis which means that volatility could rise any day. The IndiaVIX is at Pre-COVID market turmoil levels and seems there’s complacency in the markets.
Is this the quiet before the storm?
Well, looking at the price behavior and the compressed volatility, that could very well be the case.
Tomorrow, the honorable Supreme Court of India will decide the fate of Telecom and Banking companies on the AGR Dues.
Tomorrow is a weekly close and the Nifty has had a trading range of just 135.6 points during the last 4 days.
I think tomorrow is the Judgement Day for the markets!
It’s time to be cautious!
Here is the list of most oversold/overbought stocks based on my Swing Trading Model. You can opt to enter in these stocks at open or at 2-3% intraday correction.
As you can see that the Pharma stocks are oversold after hitting new highs. They will likely bounce in a few days and continue their upward journey.
Do check out the real-time performance of my strategies if you haven’t already done so.
Have a profitable day ahead!