We said of a reaction and the markets obliged and saw a good reaction from higher levels.
Now the indices stands closer to support levels , from where it can see some respite.
However if the markets has to bounce , it can bounce from near to 16790 levels , but that bounce would be viewed with suspicion and caution and can meet more selling pressure at higher levels.
On a breach and break of 16790 and a sustained trading below it will bring in trendline supports at 16500 -16100 which also seems to be the next logical targets for the sensex.
But this remains valid only on a breach of crucial levels , so one must watch the levels closely.
On the nifty front a trade below 5000 mark has brought in some weakness and more can be witnessed with nifty trying to test 4900 levels.
Technically the trend of the market has not been compromised yet , we are just seeing a correction in an overstretched market.
So the strategy remains the same for a patient trader and investor to buy on dips in a strangle and straddle manner.
The coming session yet looks volatile with stock specific moves and a probable attempt of two side move with a possible pullback and intermittent pulldown , so one needs to be cautious and quick.
The supports for the nifty is at 4900 levels and resistance at 5050 levels.
The supports for the sensex is at 16500 levels and resistance at 17200 levels.
Stocks to watch
Gail , biocon , alchem looks good
