Someone has rightly said " THE FINEST STEEL GOES THROUGH THE HOTTEST FURNACE "
The indices have drifted lower gradually, but Metal stocks are in no mood to react in tune with the markets.
As a trader I have learnt that one should always 'Buy the Beast and Short the Sick'.I will long metals on every market reaction.
The weakness in the markets was apparent since the beginning of this week and it has behaved as expected.
However, I still dont want to short this market. Reason, Its easier to kill what is half dead. There are certain pockets which are hitting circuits everyday. Some upside is still left in select Midcap counters.The market is dull and boring.It doesnt seem hurt, its just tired.
This downmove would definitely catch momentum on breaking important supports like 17300 on Sensex or 5150 on the Nifty.
PS : The above levels can be breached by 0.5% to 1% on an intraday basis. Probably even on closing basis for one day. The game has become dirty with the advent of Technical Analysis and important supports and resistances being repeated on CNBC tv 18. Give the market a day to confirm that 17000-17300 will be taken off before shorting the market.
My bias is positive on the markets.
STOCK PICK : HINDALCO IND - BUY AT 160-62, STOP LOSS 154 TARGET 175-180.
Have a great trading day,
Regards,
Rahul T,
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