NIFTY View For Week 8-12 Sep
Positive news on GDP figures has
given yet another reason for markets to scale up to new highs. While
the week gone, markets consistently gained on initial 3 days, last 2
days were looser. Is this an indication of a correction or
consolidation?
Technical Overview: The week gone, Nifty has touched high of 8142 and low was near 7984. The gains last week over week ended on 28 Aug were substantially high. Nifty gained around
150 points last week. If we consider this as period of expansion, we
can expect some consolidation in the week to come. Last 2 days have
given signs of mild correction. An intermediate resistance is formed at
8120. We assume, if this is broken markets will continue its upward
journey. The strong support emerges in the area of 7860-7950.
Short Term (Few days to a Week) : On hourly chart Nifty has support in the range of 8000-8027. On
hourly chart Nifty is giving us indications of lower top formation. If
this pattern continues Nifty will take resistance at 8120
and will further move down to its next support level of 8027. However
giving due weightage to ongoing bull run we should be prepared for Nifty to break above resistance of 8150. Short term traders can buy on decline to support 8027.
Medium Term (Few weeks to a month): If Nifty breaks above 8120 we can expect it to scale up to 8200. On the lower side Nifty has support at 7950-7900. This is a considerably strong support. If you get an opportunity, Nifty can be bought into at this support for rally of 100-150 points.
Long Term (Few months to Year): This column has been consistently maintaining one agenda- 'Buy on Dips', for long term investors. This holds for coming week.
View on Sectorial Indices:
IndiaVIX is an
Index which measures volatility in the market. This index has been
consistently trading below value of 2000. This is sign of stability. We
may expect markets to be stable so far IndiaVIX is below 2000.
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Recommendations of the week:
CIPLA (Buy): Buy Cipla Pharmaceuticals near 557.5 for target of 566. Maintain stop loss at 545.
COLPAL (Buy): Buy Colgate Palmolive near 1555 for a target of 1580. Maintain Stop loss at 1540
SIEMENS (Buy): Buy Siemens near 851 for Target of 870. Maintain Stop loss at 840.
For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com
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