Market View For Week 7-11 July
Consolidation
is followed by rally (big move) and vice versa. This move is evident
from the charts of this week. We had said last week that markets can
give us the either direction
by the end of the week. The direction is up and moving. Markets have
closed at their all time high at 7751. This suggest that here is still
some up move left. During early week expect markets to maintain the
direction. On 10th July Union Budgets is a big event. The day of budget markets usually experiences high volatility
Technical Overview: The Bullish Hammer pattern on daily chart and a Bullish candle on Weekly chart are indications of further up move. Since we are trading at all time high we have no resistance level to set the target. However a good move of 100 points from here can be expected. The gap at 7650 is acting as a good support.
Short Term (Few days to a Week) : Our
strong support now emerges at 7650. The markets may experience some big
movements in next week. This create good trading opportunities for
short term and intra day traders. We expect markets to trade in positive
territory in coming week. The Budget day closing will give us further
indications.
Medium Term (Few weeks to a month): After the descent move we may experience some kind of consolidation
after a weeks time. For positional and swing traders this is time to
book profit and wait for further signals. By the end of this month we
shall get clear direction for medium term. Till then traders will have
good trading opportunities.
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.
Nifty Trading View: Intraday buy on dips near intraday supports are suggested in Nifty. The daily levels are given on this website on homepage.
View on Sectorial Indices:
We
expect Financial Services and Banks to do well in coming week. Pharma,
IT might be in consolidation. FMCG can experience some correction.
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Recommendations of the week:
ABIRLANUVO (Buy) - Buy Aditya Birla Nuvo near Cmp of 1398 for target of 1450. Maintain stop loss at 1365
ASHOKLEY (Buy) - Buy Ashok Leyland at CMP of 36 for target of 37.5. Maintain stop loss at 35.
RELIANCE (Buy) - Buy Reliance Industries near CMP of 1032 for target of 1060. Maintain Stop loss at 1000.
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