Nifty InstaView: 12 Feb'21: Caution Advised

Consolidation with a mix of mild intra-day volatility is what the benchmark Nifty has been going through for past 5-6 trading sessions now. It seems the index is buying time and not willing to come down for which good help came in from good old friend Reliance Industries. But the overall breadth of the market has been questionable with the key sector like banking and financial stocks slowing down momentum. A drop in momentum is always a sign of consolidation before a reversal or a revival of the underlying trend. There is no doubt that the trend is UP and it has been resilient, but I feel that a drop below the psychological 15K mark can lead to some degree of price correction. If you are long bias, then keep your trades as short term as possible and if you wish to take some risk then look for contrarian shorting opportunities.

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