Short Correction In Nifty May Come: Time To Be Careful
After four days of consistent bull run, the market looked fatigued. Though market ended on the positive note, it was a choppy session. This was a clear signal of a possible pause in the momentum and may see profit booking going forward. Therefore, traders should avoid taking aggressive long bets and wait for some correction before taking bets.
Though, broader markets outperformed the main indices, with BSE midcap rose 0.38 percent and smallcap index added 0.49 per cent.
The Road Ahead For Nifty
A break below 18200 may bring down the index to 18140-18100 levels. As long as the index is trading above 18200, the uptrend will continue to 18300-18350.
However, don’t expect any strong correction when the fear for Omicron is waning fast. The number of cases coming down fast in the US and Europe. It is supposed to hold 18100 levels.
Here it is to be noted that we are not telling you to have a bearish view, but telling you to be a bit cautious for a few days.
Our other logic is based on the analytics data MMI by Ticker Tape. The Market Mood Indicator has entered into Greed Zone to Extreme Greed Zone (72 levels). It has been historically observed that whenever MMI goes into the Extreme Greed zone, the Nifty and broader market (Nifty 500) index witnesses some correction.
Therefore, we advise you to wait for some time and wait for to come to the MMI indicator in the neutral zone, which will be relatively a good time to start making fresh positions again.