It’s a Doji again …
Benchmark indices closed marginally higher aided by the beaten down Media, Metals and PSU Bank stocks.
After opening with a gap up, Nifty sold off immediately in the first hour. Bulls made a come back slowly to take the Nifty to 12000, a low to high swing of close to 100 points. Tata Motors, YES Bank, IndusInd Bank, and ZEEL are among the top gainers. IBULHSGFIN is the biggest looser which closed the day with a 8% cut on the back of negative news flow about the stock.
The indecisiveness in the minds of the investors is clearly reflected in the form of a third Doji candlestick pattern on the Nifty. We are still meandering in the the 11850-12000 zone and only beyond any of these levels can a trending move materialize. Its better to avoid any trading or go long at the lower end and short at the upper end.
On the intraday charts, we are at the 11950 resistance level. The “Rising Wedge” pattern will be invalidated above 12050.
Traders and Investors mostly make money when the markets are trending. In the current setup, the Nifty is in a 150-200 points range with sharp movements accompanied by gap ups & gap downs. The probability of loosing money in both long & short trades are high and even if you are successful occasionally, you may end up with minor gains on a net basis.
Trade safely, tomorrow is just another day