NIFTY View For Week 21-25 July
This
is different market. Market will find reasons to move in the direction
of primary trend. We better know that primary trend is up. Good macro numbers of inflation and export has made markets bounce from the close of last week. Weak global markets could not affect Indian markets.
Technical Overview: We
are waiting for confirmation of a lower top on daily chart. Same is not
in picture yet. The correction is not confirmed. However we can say
that the markets are consolidating. Markets are now trading near a small
resistance. If Nifty break this resistance we can assume level of 7800 in couple of trading days.
Short Term (Few days to a Week) : We had said that, on hourly chart the Nifty is trading near a support at 7445. That support was nicely held by Nifty. Nifty bounced back from that level. On hourly
chart, now, Nifty is trading near small resistance of 7720. It may take
small dip from this level before breaking that resistance. We assume
the resistance will finally be broken as bulls are stronger.
Medium Term (Few weeks to a month): For
medium term Nifty is trading in a range. This range is between 7445 to
7800. We assume that Nifty will touch 7800 again. It is suggested to be
on long side of the market. Its not easy to short sell in Bull Market.
The wiser theory is to buy on dips. However a word of caution is 'don’t
buy at tops'. Buy either at support or after breaking resistance.
Long Term (Few months to Year): Bullish view is maintained. We have been writing about buying opportunities on dip. Do not be panic by small corrections. It’s a sign of health markets.
Nifty Trading View: We
had suggested to short Nifty at resistance. That resistance has reached
now. However shorting is now advised only in case of a confirmation of
down move. This is purely a intraday move.
View on Sectorial Indices:
We have been optimistic on IT and FMCG last week. Both sectors did well.
Last week we have seen a pullback (or small up move) in almost all the indices. There are no
major hindrances ahead. Only some indices like Realty (not Infra),
Media and Energy are looking a bit under pressure. Lets assume that they
will also start moving. To receive this Newsletter by email drop us a mail on bonvistaplanners@gmail.com
Recommendations of the week:
BAJAJAUTO (Buy) -Buy Bajaj Auto near 2070 for target of 2110. Maintain stop loss at 2050
HDFC (Buy) - Buy HDFC Ltd near 980 for Target of 990. Maintain stop loss at 972.
INDUSINDBK (Buy) - Buy Indusind Bank near 537 for target of 545. Maintain Stop loss at 527.
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