A morning walk down Dalal Street | Use weakness to create short positions with stop loss above 12,040

Bulls remained in control of D-Street from the word go and helped Nifty to climb 11900, and 11950 levels. It had a touch-and-go-moment with 12000. The S&P BSE Sensex rallied by over 160 points.

The final tally on D-Street – the S&P BSE Sensex rose 165 points to 39,950 while the Nifty50 closed 42 points higher at 11,965.

Positive momentum triggered by banking stocks and stable global cues helped the sentiment. The S&P BSE Sensex which reclaimed 40,000 for a brief period also witnessed selling pressure at higher levels.

Selling at higher levels suggests upside remains capped for Nifty in the short term. Traders are advised to remain neutral on the long side and use weakness in Nifty to create short positions with a stop loss above 12,040 on a closing basis, suggest experts.