In our last post on NIFTY outlook,we expected Nifty to move higher towards 6150 and 6200 for retracement of 50-62% of the 350 point decline on the back of short covering.Nifty did that and went above 6200 but could not sustain there.Fed tapering news provided the excuse for the profit booking and Nifty fell towards 5975
before closing near 6000,the area of highest open interest for Put strike.
Now ,Nifty momentum is clearly downwards with short-term indicators also pointing selling pressure.Most sensitive leading indicator RSI or Relative Strength Index has not shown any reversal.
According to last trading day's FII's data from NSE, FII's bought Index futures worth ₹ 55 crore and bought index options worth ₹ 475 crore.
In the coming days,Nifty is likely to trade between 6040 and 5900 with downward bias in this expiry week.Short-term traders can trade short on bounce towards 6040 for target of 5975 and 5900 keeping stoploss at 6060 ( spot level ).
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