Banking and Power sectors poised to lead market recovery: Dharmesh Shah
«If you look at the market breadth again this is a good indicator, sentimental indicator to understand how the things pan out going forward. The percentage of total 200-day moving average of total CNX 500 is currently around 12% to 13%,» says Dharmesh Shah, ICICI Direct.
This is the fourth consecutive session where we are pretty range bound on Nifty. In fact, today we even broke down below the psychological support levels of 22,800. Tell us from here on what are the levels that you are watching out for, for next week?
Dharmesh Shah: Yes, definitely, if you look at the market for last five to six trading sessions, we have been trading this range of 23,000 to 22,800. So, almost 200 to 300 points trading range has been.
Now, the point is that if you look at the trading range, it is getting more of contracting. The range is getting more and more narrow. We believe 22,800 remains to be the very strong support for the Nifty.
Anyhow, if it breaches these levels, we can see some bit of a panic selling on the closing basis, maybe 22,600 remains to be the very strong support for the Nifty. But eventually for the next week we believe technical pullback is on cards. If you look at the market breadth again this is a good indicator, sentimental indicator to understand how the things pan out going forward. The percentage of total 200-day moving average of total CNX 500 is currently around 12% to 13%.
So, whenever the percentage approach to reading of 12% to 13% are just trading about 200-day moving average of total CNX 500,
