Lots of news flow this week. Results, rumors about Rate Hikes, cabinet reshuffles, it was the full monty. What is in store in the next truncated week with expiry as well as the RBI policy?
1. Its going to be fun. The RBI policy is just 1 day to expiry. Expectations are 50bps rate hike. Anything less markets should rally.
2. The fall will come in the next series. The Bollinger Bands are opening up indicating downsides to 5488, after a pause.
3. A lower top is in place. By this, I mean 6339-5690-6188-5624. The up move will be corrective only.
4. The indicators like Stochs and MACD on a shorter time frame have turned up and this means there should be a corrective up move. Targets could be 5836, 5902 and 5968.
Summary: Watch 5600 on downside, short below it and go long above 5718. In between stay out.