The benchmark index, Nifty has weakened in the near term and the immediate resistance is at 8640 and then 8665. The immediate support is at 8591. A breach of support of 8591 will attract bears who will make Nifty test the support of 8566 and 8450. However, if the Nifty trades above 8665 with good volumes, the chances of which are remote, then bulls will return taking it to new 52 week highs.
The day traders may short the Nifty if it trades below 8527 to cover at 8566. They may however consider going long if it trades above 8630 for a taregt of 8640 and 8665.
As for the short term traders, we presume that they must have un-winded all their long positions in Nifty in the previous session as per our advice in our previous post. If they haven't already then they might as well book profits in their long positions in Nifty at around 8640 or thereabouts and wait and watch for the day.
The mid term investors may stay on the side lines before a clear picture emerges. We presume that they have already sold out all the stocks we had advised them to sell from time to time.
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