Nifty has been range bound in recent sessions after it gives a first tick of movement. But in such a course it has given a perfect move on 5 Wave theory! Nifty is currently into a 3rd Wave of a minor trend and its expected to end this Wave within next 2 sessions.
Technically, Nifty is about to resist for a small term near to 10200-10230 mark which is a probable tgt as per Elliot wave count. This view is supported by Derivative data which has highest open interest at 10200 CE which is suggesting Writers resistance level. Indicators too are overbought zone on daily charts which supports a near term correction. We dont have any reason on fundamental or economic side, therefore this correction would be mixed bag and not sector specific. Generally banking stocks do fall with heavy momentum but PSU Banks which havent moved equally are expect to counter fight profit booking in High beta banking stocks. On other hand, Pharma counters, which are generally defensive bet against the fall have already started showing signs of improvement. Even the currency market has consolidated on lower levels for much of the time and now a counter rally in Dollar is expected. Accumulating, views from different segment of markets, we can be more sure on profit booking in near future.
Our view: Liquidate all Long position on Nifty in next two sessions and risk takers can go short on index with Stop loss of 10280 where in tgts on downside are 9950. As its just a profit booking move, we dont recommend to liquidate long term investment. We will update you soon if we get any major melt down or breakout. Thanks and Trade safe!