NIFTY View For Week 3 Nov-8 Nov
After a shallow correction markets have resumed the uptrend. Most importantly, Nifty has broken its previous all time high. The world markets have shown huge recovery last week. Japanese Index Nikki was up 5% on Friday, due to stimulus announced by Govt. of Japan. Taking clue from the world markets,
Nifty has resumed up-move. Big upward rally is a normal phenomenon in
Bull market. Due to these sudden rallies the Short positions are
difficult to manage. Do we say that correction is over and the up-move is resumed and will be here for some time to come?
Technical Overview: Friday was last trading day of the last month and week. On this day, Nifty
has seen whooping rally of 150 points. It broke its earlier high of
8180 to close at 8322. A Breakout above all time high is always Bullish.
We can expect markets to move higher in the near term. However markets
run in cycle of expansion and consolidation. After nice rally from
8000-8322, we can expect some kind of consolidation. The view is to
trade on positive side of market. However fresh buying is suggested only on dips. New support emerges at 8000-8100.
From a medium term perspective -> correction is necessary for health of market. Hereon, every up-move need to be played cautiously.
Short Term (Few days to a Week) : Trend is up. Correction can be bought. A support emerges
at 8180. Short term traders use swing movements to book profits. Wait
for markets to give a pullback and then fresh buying can be initiated.
Medium Term (Few weeks to a month): On
daily chart Nifty has broken Lower Top Lower Bottom formation. We can
expect it to form a fresh formation of Higher Top Higher bottom. The
support is at 8090. This level is buying level for Nifty Futures from
positional perspective. If you are long from earlier bottoms, this can
be right time to book profit.
Long Term (Few months to Year): For
long term buyers, we had suggested to accumulate value stocks at lower
prices. I am sure, they be happy looking at the current rally.
View on Sectorial Indices:
Infra, Financials and Auto are looking very good on charts. Lowe risk buying can be done in FMCG and Realty.
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Recommendations of the week:
Last week all three scrip's, ACC, ADANIPOWER and AUROPHARMA have met their targets.
CESC (Buy): Buy CESC near 678 for a target of 700 . Maintain stop loss at 660
HUNDUNILVR (Buy): Buy Hindustan Unilever near 738 for target of 752. Maintain stop loss at 725
JSWSTEEL(Buy): Buy Jsw Steel near 1263 for target of 1300. Maintain stop loss at 1245
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