Nifty(5375.50): Nifty saw a bounce back after 4 sessions of decline. We have a "Inside Day" pattern on the daily charts and considering the wide ranged bar on Monday this was expected.
Nifty is correcting the decline from 5630 to 5268. This is basically phase of 2 of the move that started from 5630 and counter trending. Phase 3 will be a equal to the 4 sessions of decline from 5630 or sharper than that. The level of 5077 is a 4th wave of previous degree and we should ideally see Nifty descend there if not lower. A couple of Fibonacci clusters also come in slightly above here.
Hence we should be looking to add some short positions on Nifty in a staggered manner at or around 5450 and 5495 (may be as early as 5410). If the momentum seems strong and blows through these levels - keep your powder dry. We must see some kind of stalling around these levels. Ill anyway be monitoring the intraday action.
1) Long Apollo Tyres 78 Sl 72 at close Tgt 89
2) Long GMDC 207 SL 194 at close Tgt 240