Indecision continued to reign supreme on the bourses last week, with the NIFTY rising 100 odd points on an aggregate basis, but not before feeling a massive mid-week jolt on the 25th.
Those who are justifying the current liquidity fuelled rally by pointing to improving fundamentals and economic indicators may well be forgetting that a solid recovery could well be factored into current prices!
On the technical front, the index formed a Doji Star of sorts, clearly underscoring the fact that we are now in a trendless market that is difficult, if not impossible, to trade.
The chances of a profit booking downtrend remain high, with 12,600 being the next support level and 12,000 being the level 2 support.
Bear in mind that we continue to be in a buy on dips market, and large retracements should be used as entry opportunities, not the other way around.
DISCLAIMER: Futures, stocks and options trading involves substantial risk of loss and is not suitable for every investor. If you do not fully understand these risks you must seek independent advice from your financial advisor. All trading strategies are used at your own risk.