Indian stock markets had recently created lifetime highswith the BSE (formerly Bombay Stock Exchange) and Sensex and NSE (NationalStock Exchange) Nifty 50 creating a price of 50,000 and 15,000 respectively.
Still, the Bull Run did not continue unabated and a drop inprice was seen.
However, the drop was a pullback (also called correction orretracement) and not a change in the trend. As posited by many experts, both fundamentalanalysis and technical analysis, for Nifty 13,500 proved to be a support.
However, on similar lines, 15,000 has been a resistance. It’smore than ten minutes to today’s closing and the showing by the indices havebeen strong bullish so far. But, what about this resistance?
Thus, traders, especially short-term traders, have to make adecision. Will they hold their long positions, or will they exit their longpositions? Further, will they entering a short position?
One way of looking at the price data indicates that profitsin long positions from the level around 13,500 may be booked. What happenstomorrow will determine tomorrow’s course of action.
Disclaimer: All information is for education purposes only.