Those of you who read my post last night posted here would know the importance of 5408-5411 as a reference level for today’s action.
An auction above it would mean that buyers are back in control after yesterday’s downmove.
Lower down 5355-5367 still continue as important supports.
We had discussed HDFC as an earnings candidate two days back. Girish had pointed out that it was reporting earnings on the 14th, but I was unsure whether it was at the opening bell or close.
It did report yesterday but not at the open. The stock managed another “P” at the open.
Have a look :
Once the news trigger was out, the stock just had to respect the profile.
Here is the updated version of the chart I posted last night:
The minus development region or the low trade zone between 5383 and 5408 is being addressed as we speak. I was wanting this auction to go a bit higher to 5408 rather than the 5402 we have at the moment.
We’ll not take trades here in this zone, but look to buy above 5411 as it is the previous day’s value area.
On the other side, you can short below 5380 for 5355, but I don’t rate it as a high probability trade.
I was expecting a resolution to it today, but nothing in today’s tape indicates a major change in the market pattern.
One can say that the sellers were unable to drive it down further, or the buyers were not able to take it above 5411.
My view is still positive as long as 5367 is protected EOD or 5355 is not taken out on the hourly.
But I’ll suggest to lighten up, as the move which we wanted today can unfold tomorrow also.
Let’s stick to our levels. The market is respecting them and we have no need to worry.