Market View For Week 16-20 June
After first 3 bullish days of last week and making consistent new highs, the highest being 7700 markets hinted at a correction. Since
then the level of 7700 could not be broken. On Thursday there was an
attempt by bulls to push markets higher. This attempt countered with
complete one way downside move by bears. They found a trigger in form of
Iraq crisis. Markets closed at 7542 near low of the day.
View: The
strong down move of more than 100 points suggest that there can be more
down side in markets. Or markets will trade within range for next few
days. Expecting a rally in the week to come would be more than
optimism.
Short Term (Few days to a Week) : In short term markets are expected to trade weak and choppy. Support at short term is between 7484 and 7474. Resistance is in range of 7580 and 7606
Medium Term (Few weeks to a month): In
last week we had said that markets may correct in medium term. The
current down move may be start of this correction. The high of 7700 can
be intermediate top. The strong support emerges in the range of 7430- 7390.
Long Term (Few months to Year): Bullish view is maintained. We may experience unprecedented investment opportunities in year/s to come. Every dip is buying opportunity for long term investor.
Trading View: Short selling in Nifty is advised near resistance of 7600.
View on Sectorial Indices:
Since last 2 weeks we are advising buying in Parma, FMCG
and IT. These stocks have given fair returns in last week For the week
we maintain bullish view on all these sectors. For a very short term
short selling can be done in other indices. But this should be done with
strict stoploss. We are bull market and in Bull makrets selling short is always risky. However strict discipline can earn some money on short side.
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Recommendations of the week:
ALBK(Sell) - Sell Allahabad Bank near Cmp of 132 for target of 125. Maintain stop loss at 135
HCLTECH(Buy) - Buy HCLTECH at CMP of 1439 for target of 1485. Maintain stop loss at 1420
HINDUNILVR(Buy) - Buy near 635 for target of 645. Maintain Stop loss at 623
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