December 4, 2013

NIFTY correction... market still buy on dips?

We have the start of what looks like a minor correction. Fall in VIX and increasing open interest at 6000 put implies limited downside.

Advance decline was flat so we did not really have any selloff.  This can change if decline persists for more than 2-3 days.

Intraday 5 min charts point to rangebound trading... we had a break of an intraday support at 6220F followed by a correction and then back to open.

30 min charts show a rounding top... this is bearish. This means for any bullishness, markets must cross 6240F.

On a different note, if you have some money you don't mind losing, you can consider buying 6300 call on any panic declines. I do not expect 6000 to break this series.

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