Back into the pressure cooker: Mohit Gaba

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Technical Analyst, Prakash Gaba:

The Nifty opened and started to move up initially, however came back down to yesterdays low levels and towards the last hour buyers came in and supported it. The thing is that it has moved up really fast 17% or so in 5 weeks to be precise. Now it can correct pricewise, which is move lower or time wise, which is stay in this 80 point band (sideways) for sometime before resuming its upward journey.

It is like a human being, when we sprint or run fast after a while we need time to recover before we can resume running fast again. The Nifty is in a similar phase, its resting before it can resume its run up. As I have been mentioning for the last 5 sessions, long positions should be held with a stop below 5338, at the break of which would be the first sign of weakness.