NIfty Loosing Momentum at All Time Highs!

We have witnessed huge buying support on the election results being positive for BJP and concluded that a new Fresh rally might be emerged from the levels 9060-70 in our last post but the past few days have not been good for the markets that can be seen from the reduced momentum that is visible in the markets and also a biggest percentage drop of 1% is seen after two months in the index on this Wednesday.

Though there is huge buying support from FIIs at these levels in the cash segment the index has not witnessed a Significant momentum which otherwise should have been the case.Also they are loading bearish positions in the Stock Futures segment as a Hedge of their portfolios from the past two weeks in a significant amount, This cautions us in believing in further rally from the current levels.However there is also no reason to be hugely bearish on the markets be it fundamental or technical.Only the momentum is reduced here which signals a caution to adopt.

Based on the current market conditions the bullish momentum will be back in the market only if the Nifty manages to close above 9170 spot on a daily closing basis . We believe this level to be the turning level for both bulls and bears.

So the Strategy would Short with SL 9170 Spot as long as LTP below 9170 and Long above 9170 with SL as 9170 Spot.