Markets traded absolutely flat in the morning session trades this Thursday as gains in metal and mining stocks were partially offset by losses seen in banks and IT indices on back of profit-booking.
At 10:20AM, the 30-share Sensex gained 9 points at 20,555 and the 50-share Nifty was down 3 points at 6,086 levels.
Global risk appetite was, however, positive note as US Senate leaders announced a deal to prevent the United States from defaulting on its debt and end the government shutdown.
Ravi Nathani, Technical Analyst at nsetoday.com tells Manu Kaushik of smartinvestor what stocks from IT pack are due for short-term correction. Nathani also outlines the strategy to trade the pack when investors are booking profits in IT counters. Below is the transcript:
SmartInvestor: Market erased initial gains after opening higher over resolution of US debt ceiling issue and now what are the key levels you would advice investors to keep a tab on?
Ravi Nathani: Nifty has stiff resistance around 6160. Close above this level would only attract fresh breakouts. As Nifty had a sharp rally in short term we might attract profit booking on rise, whereas support on charts is expected around 5990. Best trading strategy for traders would be to go short on rise with a strict stoploss of 6160 as per closing basis.
SmartInvestor: Axis Bank is in focus ahead of its Q2 earning numbers to be released later in the day. How should one approach the counter?
