The nature of the market is such that no seasonal strategies will work. If you followed the Sell in May adage, you may be right for few months and there are years when people came back from May holidays only to find the indices racing ‘while they were away.’
We have to live with this and this morning doesn’t look very pleasant to begin with. The indices have been week for most part this week and the Nifty came down almost a percent as monthly derivatives contracts expired.
The opening is likely to be subdued. The Nifty is hovering around its 200-DMA support levels. Expect a range-bound day as investors should adopt a defensive strategy in view of the result season and the upcoming RBI meet next week. Food inflation rose marginally to 8.76% for the week ended April 16. This has further raised expectations that RBI will raise rates by mostly a quarter percentage point on Tuesday.
