Tomorrow's outlook:
It was a dull day of trade today with a positive opening, then profit booking and finally a flat close. The action was in the midcaps and smallcaps space. Ahead of the Infosys results tomorrow, experts feel there will be some volatility and if results are positive the market could rally past the Nifty 5300 resistance. Sensex shut shop at 17526, down 13 points and Nifty at 5249, up 4 points from the previous close. CNX Midcap index was up 0.94% and BSE Smallcap index was up 1.80%. The market breadth was positive with advances at 964 against declines of 333 on the NSE.
Trading strategy tomorrow would be to wait for things to settle down. Avoid the first 30 min, no matter how tempting it is or keep strict stoploss. Nifty operators wait for some positive results to start dumping. The moment action has shifted to midcaps and small caps, it normally is a waring bell that we have reached the peak based on valuation of nifty stocks. Money is flowing in, but into the broader market. The advance decline ratio points to this. Nifty is not allowed to fall while they accumulate / distribute into the broader market.
Cam levels for tomorrow :
H4:5,281.87
H3: 5,268.98
L3: 5,243.22
L4: 5,230.33
Infy's result might be the trigger we have been waiting for. Either we cross 5300 or we break the 5237 mark and head lower.