NIFTY View For Week 22-26 Sep
Last week we had indicated at a correction in Nifty. Nifty plunged considerably during first 3 days of the week. Nifty found a nice support near 7910 supported by surprise decisions from Federal Reserve of America. Upward rally continues in world markets. Indian markets have had one way rally since last 3 months. What next?
Technical Overview: F&O expiry week is ahead of us. Technically we need to analyze 3 scenario for coming week. (1) Nifty Breaks above 8150-8180 range. In this case, immediate (next 1-2 months) target for Nifty would go up to 8500. Many times markets do what we don’t even think. (2) Nifty Remains in 8150-7900 range. Nifty is expected to consolidate for some more time. 3 Nifty Breaks below 7900.Correction is confirmed in Nifty. In this scenario the target would 7640.
Weekly
Nifty chart has formed Hanging Man at the top. This is a bearish
pattern. If Nifty does not break above closing of Hanging Man, bearish
pattern would be confirmed.
For the time being, I would go with second scenario. Markets are expected to remain choppy.
Short Term (Few days to a Week) : We
had indicated a resistance at 8150. Nifty, after touching 8166 had
shown bearish signs intraday. We expect a correction up to 7990. I think
we are in a period of consolidation. IN this period short term traders
can earn on both short and long sides.
Medium Term (Few weeks to a month): On
daily chart our resistance in 8150-8180 range is intact. During coming
week swing traders should avoid trading. Markets are expected to remain
choppy.
Long Term (Few months to Year): Markets
continues to be long term bull run. As mentioned above, if we get a
correction, this can be a good buying opportunity fro individual
fundamentally strong stocks from investment perspective.
View on Sectorial Indices:
The
Technical Indicator like MACD are looking a bit exhausted some Indices.
Pharma, IT are looking good as they are most of the times. Energy,
Infra and Realty are taking supports. Some short term buying can be done
in these indices.
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Recommendations of the week:
HDFC (Buy): Buy HDFC Ltd near 1066 for target of 1080. Maintain stop loss at 1050.
JUSTDIAL (Buy): Buy Justdial Ltd near 1728 for a target of 1760. Maintain Stop loss at 1695
KOTAKBANK (Buy): Buy Kotak Bank near 1063 for Target of 1080. Maintain Stop loss at 1050.
For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com
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