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Here's how to trade Nifty in a rangebound market

The Nifty looks sluggish and is attempting a recovery now; we could head lower in the next few days towards 6000 if the down side plays out

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Manu Kaushik Mumbai
Last Updated : Feb 20 2014 | 12:56 PM IST
Benchmark indices continue to witness selling pressure tracking Asian markets along with metal and financial shares leading the decline.

At 12:12 AM, the 30-share Sensex was down 90 points at 20,634, while the Nifty-50 was down by 33 points at 6,120.

Nifty has been consolidating in the 5180-6120 for past some sessions now. Mohit Gaba, Independent technical analyst & trader suggests what the best strategy to trade Nifty going forward and picks top stocks for short-term gains

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Benchmark indices edged lower in today's morning deals. Is there any sign of Nifty breaking the 5980-6150 range anytime soon?
The Nifty looks sluggish and is attempting a recovery now; we could head lower in the next few days towards 6000 if the down side plays out

So, buy on dips and sell on rally, the best strategy to trade Nifty now?
At present going short on the Nifty with a stop loss above yesterdays high could be a trade that plays out if the Nifty moves lower

What is your take on BSE Metal index. How are SAIL, JSW Steel and Tata Steel stocks placed technically?
All the 3 stocks are trying to find a bottom and consolidate, but no signs of strength yet, hence wait and watch this space is the call. The metal index has see a nice rally from the lows and so far is trying to consolidate after its big up move, I would wait for some sign of strength before I buy into the metals stocks

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First Published: Feb 20 2014 | 12:51 PM IST

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