For the first time since May 2011, Nifty again appears set to enter a prolonged down trend. The charts show extreme bearishness. You will however have bouts of up moves and they must all be utilized to get out of any long positions - futures or delivery - that you are holding. I fear that any up move may not hold and will fizzle out eventually.
Nifty view for the current week -
Nifty has strong resistance zones near - 4780/ 4880/ 4970. I do not see Nifty to have strength to trade beyond 4900. But incase it does that, 5040 shall prove extremely difficult to close above. Short positions can be opened at 4850 or higher levels with proper stop loss.
I would recommend to stay away from any long positions right now. "Losing a opportunity is better than losing money. You can always catch up later. The market is not going to close soon."
As far as the downside is concerned, in the coming week or 2, expect Nifty to show levels of 4695/4635/4550/4450.
Bank Nifty view for the current week -
For Bank Nifty, the downside movement looks to have lost some momentum at least for the short term. This may show some up move in the coming week.
Bank Nifty levels possible this week are - 8560/ 8760/ 9050.
However, the upside may not last for long, as the overall direction remains down. On the up side 9300 looks difficult to sustain.
Long positions are recommended for the current week. Fresh short positions can be taken once it trades above 9050-9100 or so.
FnO trade recommendation - Buy TATA MOTOR 180 Call below 7.50, SL 6.0, Target 9/10/11.
TATA Motors 180 Call days low 7.10 and high 10.80. 2 targets achieved.
ReplyDeleteBank Nifty rallies too. 2 targets achieved. It would be interesting to see how nifty trades near 4880 tomorrow.
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