Today, expect the Markets to open on a flat note again and consolidate.Yesterday, the Markets saw some corrective movement yesterday but has remained within its broad trading range and still continues to trade above its critical supports. The volumes and the intraday trajectory that the Markets form would continue to remain important with the levels of 100-DMA continuing to act as immediate resistance.
For today, the levels of 6130 and 6155 would act as immediate resistance and the levels of 6060 and 5985 would act as immediate supports for the Markets.
The RSI--Relative Strength Index on the Daily Chart is 47.1296 and it is neutral as it shows no bullish or bearish divergences or failure swings. The Daily MACD is bullish as it trades above its signal line.
On the derivative front, NIFTY February futures have shed over 8.17 lakh shares or 5.21% in Open Interest. This signifies offloading of positions and profit booking at higher levels.
Going by the pattern analysis, the Markets still continues to remain in a broad trading range between its 100-DMA and 200-DMA acting as its supports. Going by the F&O Data, there are chances that the Markets continues to consolidate and remain in corrective mode within the trading range for some more time.
All and all, it is advised to continue to remain light on positions and avoid over exposure in the Markets. Any downside should used to make selective purchases as sectoral out-performance would be seen. While maintaining adequate liquidity to protect positions, moderate exposures are advised in the current trend while avoiding shorts as Markets may find support near its 200-DMA again. Overall, cautious outlook is advised for today.