Last
week was the second consecutive week of secular gains for Nifty. Nifty gained
200 points in last 2 weeks, 100 in each. This is a clear cut reversal in the past down trend
that started since Nov 11. The immediate short term direction remains up
and short positions are strictly avoided.
Nifty view for the week Starting Monday
23 Jan 12 -
As
indicated in last week's opinion here, Nifty cleared 4880-4930 zone with ease
and immediately rallied to 5000+ levels.
For
the current week, the trend remains UP. Nifty has solid supports @ 4990-4975
and 4960-4950 zone. Any move close to these levels must be viewed as a great
opportunity to go long. Buying calls is recommended here.
On
the upside, Nifty faces resistance near 5050-5070 band. Once taken out it will
quickly rally to 5100/5120, where profits can be taken in the long positions.
Anyone wishing to build long term
positions in individual stocks must do it from this week and Nifty seems to have
found its bottom, at least for now.
Power Investing- Changes the Investing
Paradigm
Last
week, on 18 Jan I posted a Power investing call here - http://www.samirmachawe.blogspot.com/2012/01/power-investing-buy-nifty-5000pe.html. I recommended Nifty 5000
CE to buy below 35 and by 20 Jan we were out of it with money doubling in just
2 days.
I not only recommended it to others, but also traded the same in my
account. On a investment of Rs. 5100, I made a net profit of Rs. 3526 in 2
days. That’s a absolute ROI of 69% in 2 days. Not bad uhhh!
 |
| This trade was done in my wife's account-name can be seen at the top. |
As indicated above, once 5070 was conquered, 5120 + was reached in no time. Next, nifty is like to face resistance @ 5145-5165 zone. Once over this it will quickly rally to 5210-5230 zone. On the down side strong support exists at 5070-5040 band. Any move below 5100 spot must be used to open fresh long positions. Buy on dips is the strategy one must adopt to trade nifty now.
ReplyDeleteNifty a solid support at 5090-5070 zone and I do not see much chance that it will close below these levels in the foreseeable future.In a rare chance, even if it does so, 5040-5020 remains the rock bottom support and should show a strong bounce from there. Keep adding long positions with every dip. Start averaging your favorite stocks, if you haven't already done that. Expect Nifty to soon show 5210/5230/5245/Higher levels in the immediate short term. Stay long, stay happy.
ReplyDelete5210 achieved today. Nifty high 5217. See higher levels indicated above in coming days.
ReplyDelete