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We had a gap up opening in our markets owing to cheerful mood across the globe. However, this turned out to be a formality as markets failed to sustain at higher levels. After the initial lead, our markets started sliding gradually and banking conglomerates were the major culprits in this. Due to a slightly extended correction towards the fag end, the Nifty eventually closed slightly below 16000 by shedding over half a percent to the previous close.  

As we have been alluding to, key indices have clearly slipped into a consolidation mode and by no means, one should construe this as a sell-off or a sign of concern. Yes, we are close to the crucial support zone of 15950 – 15900, but till it remains unbroken, one should use this decline to go long. On the higher side, 16040 – 16140 remains a sturdy wall for the weekly expiry session. As of now, there is no clear indication of the Nifty coming out of this trading range; but any decisive move beyond these mentioned levels would trigger some momentum in an index.  Until then the pragmatic approach would be to buy as close as possible to the support zone and try to exit around the higher boundaries. Global markets continue to remain a key factor and hence, one should keep a close eye on these developments as well. Meanwhile, traders can continue to focus on thematic moves and try to identify potential movers from the same.