NIFTY View For Week 25-29 Aug
Markets usually act beyond what people think. A supposedly correction last to last week had a very short life. Fearless bulls are buying at every decline and as a result market is touching new highs. Coming
week we have expiry of futures and options. Market may remain volatile
with positive bias during this period. Option data suggest expiry in the
range of 7900-8200. Since we are in positive momentum we assume, in the
week to come markets may touch new highs.
Technical Overview: The
week gone Nifty has touched high of 7929 and low was near 7779. The
weekly candle, the options data suggest that there is more higher side
before end of August. The immediate support is in the range of 7830-7890. Medium term support is in range of 7540-7600. We shall not write resistance level. But the current Options Writing increased in 8200 and 8100 Call Option suggesting these levels can act as resistance.
Short Term (Few days to a Week) : On hourly charts Nifty is trading in the range of 7850-7930. A breakout or breakdown from this level will offer us trading opportunity. We assume that Nifty will break
on higher side. However, If it breaks below this range, then traders
can buy Nifty on decline, near support of 7830 (Index level).
Medium Term (Few weeks to a month): In
medium term Nifty is expected to remain Bullish. During expiry
volatility, markets may offer some buying opportunities on dip. Don’t
miss this opportunity. You may buy Sep Futures in Nifty. As written
above the medium term resistance is in the range of 7540-7600.
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:
PSU Banks, IT are looking good. IT has given signals of bouncing from its support.
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Recommendations of the week:
HINDALCOA(Buy): Buy Hindalco near 182 for target of 188. Maintain stop loss at 178
RELINFRA (Buy): Buy Reliance Infra near 731 for a target of 742. Maintain Stop loss at 720
TCS (Buy): Buy Tata Consultancy Services near 2464 for Target of 2485. Maintain Stop loss at 2440.
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