Benchmark indices are trading in a narrow range with negative bias. The Nifty index is trading close to its 200 DMA after breaching it intraday in the previous session.
The broader markets are, however, out-performing the benchmark indices. The BSE Mid-cap index has gained 0.26% or 6,298 and the small-cap index has surged 0.83% at 6,298 levels.
Check out the trading strategies in Bank Nifty, ITC shares, stocks to buy/sell and views on Midcap segment with Devangshu Datta, Technical Analyst.
SmartInvestor: The Nifty index is trading close to its 200 DMA after breaching it intraday in the previous session. Do you see the trend continuing? What's your view on the same?
Devangshu Datta: Support at these levels of 5950 approx is being repeatedly tested. Impossible to predict if it will break or hold. A good trader should be prepared for both eventualities.
Devangshu Datta: For the moment keep a stop loss at 6050 if you short and at 5935 if you are long (both futures prices) and wait and see where the index goes.
SmartInvestor: What is your advice for investors to trade in Bank Nifty?
Devangshu Datta: The Bank Nifty looks quite negative; I think it will test 9900-9950 support again.
SmartInvestor: Midcaps have been on roll for some time. Can they continue to outperform the benchmark indices in the near future?
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