Market View For Week 23-27 June
Nifty is in consolidation. This consolidation may continue till markets get a trigger for movement either way. This move can be either side. We
had hinted at choppy nature of the market in our letter last week. Last
week bulls made an attempt to break above but failed after making high
of 7663. The closing near the low of the week at 7511 suggest that there
can more downside. Given the fact that markets are in long term bull
phase, we can consider the downside to be limited.
View: The next big trigger is Budget in the next month. Expect the range-bound trading with a negative bias till then. This market is not offering many short selling opportunities. Hence trade is to go long on dips.
Short Term (Few days to a Week) : The support level given in this letter the last week are still intact. We expect Nifty to hold this support in short term. On Thursday in coming week there is F&O expiry. The markets may remain volatile during this period. Support at short term is between 7484 and 7474. Resistance is in range of 7620-7660. Very few trading opportunities would be offered in this period.
Medium Term (Few weeks to a month):Narrow
ranges are broken on either side after consolidation. We are in
consolidation. We can expect a big move on either side once the
consolidation is over. We can not predict the direction of the move.
However, being in bull phase, we are inclined towards a bullish move. The strong support emerges in the range of 7430- 7360
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: Avoid Trading during this week
View on Sectorial Indices:
Pharma and IT are trading very near to their resistance. Buy on breakout of this resistance. FMCG has consolidated but trading near its support. A low risk long trade in FMCG can be made. Media stocks are looking good on chart. Longs can be initiated in these stocks for the week to come.
Other Indices are not offering great opportunity and one should wait patiently for the opportunities to come.
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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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