Strong retail sales data and drop in US long term inflation expectation were the reason for strong upside movement in US indices. Indian market is expected to follow the upside trend with gap up opening. This week is less important from data point of view. There is single event which we should follow and that is ECB's monetary policy. COVID cases are rising in China and hence crude and metals will under pressure. These are triggers for market
Technically, there will be breakout if it opens above 16180-16200 range but we should avoid buying at gap up opening. Wait and watch whether nifty sustains above 16200 or not. I am personally expecting profit booking there. Fresh short can be made too with strict stop loss as per comfort. On lower side, 15850-15900 is strong buying zone where traders get better risk reward ratio.
PCR is at 1.21 which is nearing to overbought. FIIs position is at 17% which is oversold.
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