Bonvista Financial Planners

NIFTY View For Week 13 Oct-17 Oct 

In the last post I had written about Bull Exhaustion and start of correction. The actions are reality today. The international markets have been under pressure. Last day US markets have taken plunge to close lower by almost 2.5%. Nifty is experiencing pressure due to international scenario. Fall in Nifty may be limited compared to world major markets.                                 

Technical Overview:  Nifty has started making formation of lower top, lower bottom on daily chart. A small support area is formed in the range of 7842-7815. However this is expected to be breached sooner or later. Markets may remain in the range of 8030-7815 for coming week. The resistance level is 7950-8030. The support comes at 7640-7540 (we expect markets to move down to this level in few weeks). 

 Short Term (Few days to a Week) : A gap down opening on Monday is expected. If markets gap down below 7815, we may not see intraday bounce back above 7840. If the markets open above 7815, we may expect a bounce back to 7895. This area can be a good Short Selling opportunity for short term traders.      

Medium Term (Few weeks to a month): On daily charts Nifty is in the formation of lower top lower bottom. This is time for traders to sell at resistance. The resistance area of 7950-8030 can be a good selling opportunity.                                                                                      

Long Term (Few months to Year): Long term investors would have been waiting for this opportunity since las-3-4 months. Wait patiently. Let them fall, let the prices come to attractive level, and then start buying for long term investment. 

                                                                                                                               

 View on Sectorial Indices:  

All major Indian sectorial indices are under pressure. Wait patiently for buying opportunity. Short term traders can short sell the indices active in F&O 

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Recommendations of the week: 

Last week TVS Motors and UPL have met their targets. 

GMRINFRA (Sell): Sell GMR Infra near 21.85 for a target of 20 . Maintain stoploss at 23.5 

BHEL (Sell): Sell Bharat Heavy Electricals near 221.60 for target of 205. Maintain stoploss at 232 

JUSTDIAL (Buy): Buy Justdial near 1659 for target of 1700. Maintain stoploss at 1630 

For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com