NIFTY Continues To Be “Buy On Dips”

The index met with stiff resistance near the 12000 mark and tumbled alarmingly on Thursday amidst fears surrounding COVID-19. However, Friday’s smart recovery once again indicates that the overall mood of the market is more bullish than bearish, and that the NIFTY continues to be “buy on dips”.

On the daily charts, the bellwether index has now completed a bearish crossover, and this short-term momentum may very well see the NIFTY dipping below 11,400 in the near term. If it fails to hold in the 11,400 to 11,450 range, a further cut of 500 off points may be witnessed until it hits the lower channel on the dailies.

The immediate upside certainly remains capped in the near term as a confluence of global and local factors will dictate short term sentiment. However, short selling is ill advised right now as it is expected that corrections will be followed by rallies that will take the index to higher highs in the medium term.

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