NIFTY View For Week 1-5 Sep
Markets
have at all time high on the day of Futures Expiry. The positive
momentum continued through out the last week. Albeit they were a bit
choppy as a result of F&O expiry. Every dip was bought into. The
markets were pulled after every small decline. We know, that markets should remain in upward momentum un-till charts give us clear indication of correction.
Technical Overview: The week gone, Nifty has touched high of 7968 and low was near 7862. This
was a very narrow range of about 100 points. Daily chart of Nifty has
shows a luster of very small range candles. The are called as "Narrow
Range" candles in Technical Analysis. Narrow
range is followed by breakout and vice versa. We can expect a breakout
in the coming week. The breakout can be on either side. Howe ever since
the markets are in uptrend we say that breakout will be on up side.
Short Term (Few days to a Week) : On
hourly chart Nifty has support in the range of 7900-7915. Short term
traders can buy on decline to this support. If Nifty breaks this level,
next support is in the range of 7814-7835. Short term traders are
advised to buy on decline to these levels.
Medium Term (Few weeks to a month): In medium term Nifty is expected to remain Bullish. The
support is at 7840. The upside targets comes to around 8200 for months
of Sept. The breakout above current high of 7968, gives us buying
opportunity.
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 healthy market. Buy on dips for long term investing.
View on Sectorial Indices:
Except
Infra, Realty and Energy all other sectors are looking good on chart.
Infra, Realty and Energy are also trading near support. They can offer
good low risk buying opportunity for very short term. Media can be bought at its support.
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Recommendations of the week:
ABIRLANUVO (Buy): Buy Aditya Birla Nuvo near 1454 for target of 1500. Maintain stop loss at 1420
DIVISLAB (Buy): Buy Divis Laboratory near 1565 for a target of 1600. Maintain Stop loss at 1550
HINDZINC (Buy): Buy Hindustan Zinc near 165.75 for Target of 169. Maintain Stop loss at 164.
For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com
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