Published on Tue, Feb 21, 2012 at 08:34 | Source : Moneycontrol.com
Updated at Tue, Feb 21, 2012 at 08:35
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Stretched on the upside: Mohit Gaba
Long positions should continue to be held with a stop loss at 5540, the break of which should be the first sign of weakness, says Technical Analyst, Mohit Gaba.
As expected the Nifty continued to move up with help from the heavy weights like Coal India and the Bank Nifty. It was a nice gap up and for the most of the day the Nifty traded higher, however toward the last hour and a half of the trading session the Nifty started to come down, may be due to the long weekend that loomed ahead and the longs wanting to take home profits, who could blame them there has been an expectation for the Nifty to correct for a while now and it has continued to rise strongly.
Surprisingly the Bank Nifty did not correct as much as the Nifty towards the end of the trading session. The only worrying thing I see is that both the Nifty and Bank Nifty have made indecisive bars with a negative bias on a daily time frame and the Indices could very well start to make a corrective move purely based on the bar formations made today. Long positions should continue to be held with a stop loss at 5540, the break of which should be the first sign of weakness.
