The markets have a tendency to couple and decouple with the Asian Markets as per their wish. The result season has just gone by and we are moving in tandem with the Asian Markets.
The Asian Markets are highly oversold and even if they are headed down eventually there should be one bounce.The longer the bounce is stretched, the wilder it will be.
But once again we are standing at a country specific event.....THE BUDGET!
There has been a tradition of having a pre-budget rally and every market participant was expecting the same to be the reason for the next upmove when we were hovering around 17500 odd ( before market decided that it had some other plans! )
Now nobody expects a pullback....and I am tempted to take a contrarian view. I don't want to get into the race of calling exact figures.
Best case 16000 should hold....worst case 15500 should hold. Be its sufficient to say we are close to the bottom. Doesn't make sense to exit or go short now.
Banks have been hammered very badly. They can stage a comeback.It doesn't make sense fundamentally with the market expecting a hike in Repo rates.
But the risk reward is favourable in Banks and that makes it a good trade.
BUY ICICI BANK WITH A STOP LOSS OF 795 ( POSITIONAL ) FOR A TARGET OF 900+
Have a great trading day,
Regards,
Rahul T.
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