Market setup: Market might be due for one short covering bounce

Indian equity benchmarks BSE Sensex and NSE Nifty50 are likely to begin the week higher tracking gains across most global markets.

On Friday, the market had a big bounce, but that was brutally sold into. Friday was the worst of the days because it was Friday the 13^th and then the market after a gap up give up almost 300 points from the highest point of the day. The dollar has been consolidating and has not moved above 105 which is a bit of a positive for the market.

Friday's low was very close to the March lows, Friday’s low was 15,740; the March low was 15,671. So it is possible that the market might just defend this level and that is because now everyone is on one side. The market might just have a short-covering bounce. The possible counter-trend rally, however, any counter trend rally would be an opportunity, perhaps the last opportunity from the market's point of view to exit poor stocks over-leveraged stocks.

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