Bonvista Financial Planners

Monday, December 1, 2014

NIFTY View For Week 1 -5 Dec

We had said that markets may test 8600 in near future. The markets touched 8600 on last working day of last week. That was also last working day of the Month. The positive global environment, falling Crude prices and upcoming RBI policy have lifted Oil marketing company’s and Banking Stocks. Pulling Nifty to level of 8600. We are entering new month on Monday. Do we say that market has discounted the RBI policy?

Technical Overview: Market traded in the range of 240 points last. That was a good trading range. A breakout above previous high was seen. After the extended rage, we may see some range-bound activity next week. We have no signs of correction, however, markets are giving slightly overbought signals on Technical Indicators. This means a correction or start of correction can not be denied.Support is in the range of 8500-8450. We do not have any upward targets.

Short Term (Few days to a Week) : Nifty may trade with negative bias on very short term. We have resistance at 8595-8615. Short term traders may sell in this range for target of 8510. The support emerges in the range of 8506-8490. One can buy Nifty futures in this range range.

Medium Term (Few weeks to a month): A support in the range of 8500-845, if held during next week, we may seem more upside. Overall from medium term perspective we should buy only on dips.

Long Term (Few months to Year): The long term holders can book some profit at this point.

View on Sectorial Indices:

Metal and Pharma are trading at support. Low risk buying opportunity in these stocks. Banks, Financial Services, Infra, Realty and IT are bullish. FMCG may trade under pressure.

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Recommendations of the week:

Last week Indusind Bank had achieved target. Stop loss triggered in Adaniports and Cairn. Net Loss - 1000/- RANBAXY (Buy): Buy Ranbaxy near 612 for a target of 630. Maintain stop loss at 607