Hardik RuparelTechnical Analyst, Centrum BrokingWhere are We? After a breakdown from a range of 12,050-12,250 on the budget day sell-off, the Nifty fell to 11,660 a fall of more than 500 points in a single day from the highs.
In the following week, most of the gains erased by the budget sell-off were regained and the index closed at 12,098.35.What should Investors Do? With a favourable RBI policy, the markets scaled past the 12,000 mark again in a week.
We expect market to consolidate its gains and trade in a broad range of 11,850-12,300 before the next leg of up-trend resumes.
The advance-decline ratio has been constantly improving and the next levels to watch out for are 12,270 and 12,330.
On the downside, 11,980,-11,830 would be a strong support zone.What investors could do? The Nifty is expected to carry forward the positive momentum into the month of February after a brief consolidation.
The right strategy for the Nifty now is to buy on dips with a stop loss at 11,730 and a target of 12,350-12,400.
Stocks from the small-cap, mid-cap sectors, MNCs and pharma space look attractive for trading longs; whereas automobile stocks could continue to underperform.