NIFTY View For Week 15-19 July
Event packed week is over. Markets
have created opportunities to ride Roller Coasters. (Short Term)
Traders who were on right direction of market would have made money.
Those who missed the direction would have 'distributed money' to other traders. After all trading is zero sum game. On the day of Railway budget markets had made intentions clear. I want to travel southwards. So, even after presenting a 'fair' budget markets didn’t move up. This can be a start of correction. The markets have close near weekly low of 7460.
Technical Overview: We had indicated at 100 point up move (from last to last week's high) which
lasted for around 60 points. On the day of Railway budget our important
support of 7650 was broken on charts. Since then markets have moved
down by almost 200 points. What next? Well we are not astrologer to
predict. But on 'Bearish
Engulfing' Candle on weekly chart suggest that there is more downside.
We shall wait lower top to be created on daily chart. On hourly chart a
lower top is evident. There are multiple support zones but the major one
comes at 7050.
Short Term (Few days to a Week) : On hourly chart the Nifty is trading near a support at 7445. But this support has become weak. It can be broken after a small pullback. Or on Monday markets would gap-down and open below this support. The next good support emerges at 7220. You may want to sell on rise near resistance of 7580-7625.
Medium Term (Few weeks to a month): We
had suggested profit booking for medium term traders in our last weeks
post. As suggested last week the current down move can be a start of
consolidation or correction. Medium term support emerges in the range of 7260-7220. Resistance is at 7635-7650.
Long Term (Few months to Year): Bullish view is maintained. We
have been writing about buying opportunities on dip. This down move is
one such opportunity. Long Term investors can find good value picks to
buy at lower levels.
Nifty Trading View: We
would suggest to find shorting opportunities on rise near resistance.
This short position can be maintained in short to medium term.
View on Sectorial Indices:
IT and FMCG are trading near support. Cautious buying can be done in these sector. Quarterly Result season here. High volatility is expected. Hence the cautious approach.
All other indices are currently not giving buying opportunities.
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Recommendations of the week:
ALBK (Sell) - Sell Allahabad Bank near Cmp of 115 for target of 110. Maintain stop loss at 118
AUROPHARM (Buy) - Buy Aurobindo Pharma at CMP of 691 for target of 715. Maintain stop loss at 680.
HCLTECH (Buy) - Buy HCLTEH near CMP of 1501 for target of 1525. Maintain Stop loss at 1480.
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