Market has recovered well after the scare of Friday. So, is this war game also consumed in a day, like the Pak war thing? If so, the market is sending us a signal that it is now taking such skirmishes emerging as kind of “normal” thing and the best action would be to take the blow on the chin, feel groggy for a short while and then simply continue. In other words, keep the faith in the bigger trend even if the smaller trend keeps wobbling every now and then. Wobbling is in the nature of the market and that will not change. It is for us to find ways and means to deal with it.

Breadth has improved post the open, not that it was very poor at the start. But from about even distribution of gains and losses, it is not tilted towards the winners (67:33) and that tells us that people are regaining confidence. Of course, markets become stronger and trended when people are willing to go on some adventure. Maybe that shall take a few days more of such recoveries.

Number of stocks in Well Set Bear list fell sharply (got negated, that is) as the recovery progress thru the day. They dont automatically flip over to bullish and therein we find a small mix of Oil, IT and Pharma stocks which could be played for long. For those intersted in shorting can look at the Wellset Bear stocks in the Adx Powertrend under 60 minues where you can find many commong candidates. But be advised that if the overall recovery persists, then these plays may require enforcing stops too.

Bank Nifty trip zone can now be raised to 55600 with 56000-56200 as the strong resistance. On the NF, trends are even better compared to the BNF and tripping point can be raised to 24700 and the resistance remains around 25100. Momentum has improved a wee bit but will have to take hold more for the recovery to sustain. If the Iran theater news doesnt become worse, then this recovery phase can be better.