Saturday, December 13, 2014

NIFTY View For Week 15 -19 Dec 
What a mayhem that was. One sided upward rally by Bulls since may punished by equally heavyweight Bears in last week. For long and medium term investors we had advised profit booking in last two newsletters. Markets can not run one way. Correction is inevitable and is a sign of healthy market. Reason can be anything, bears were waiting for opportunity. China became a catalyst this time. The range we had mentioned in our last post broken downwards. 
Technical Overview: Support of 8300 is broken by Nifty. Big range candle on weekly chart suggests a correction to continue. A small pullback (relief rally) upwards however is expected. This pullback may come in next week. This pullback may be used to create short positions. First resistance is in the zone of 8310-8380. Next resistance is in the zone of 8525-8625. The major support comes in the range of 7800-8000.                             
 Short Term (Few days to a Week) : From short term trading perspective we expect a relief rally. This relief rally can be bought if you are a aggressive trader. The support is in the zone of 8180-8140. We can expect a target of 8290. A bigger trade can be initiated on short side once Nifty reaches our resistance zone. 
Medium Term (Few weeks to a month): We expect the correction to stay here for some time. The medium term traders can go short at the resistance levels we have mentioned above. The target can be 8100 and 8000 
Long Term (Few months to Year): We had advised some profit booking or our long term investors. Hope they would have cashed some amount. Ongoing correction will stay here for some time. Wait patiently for prices to correct. Buying can be done in value stocks at lower levels. 
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 View on Sectorial Indices:  
Banks and Financials remain our bet. During last week they were ones to fall least. IF relief rally comes, some short term buying can be done in these stocks. Specially PSU Banks.  IT and Pharma, being defensives, can start an upward move. Cements stocks can make a move upwards. 
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Recommendations of the week: 
Last week we have incurred a loss of 22500/-  
ADANIPORTS (Sell): Sell Adaniports near 277  for a target of 265. Maintain stop loss at 287 
AMBUJACEM (Buy): Buy Ambuja Cement near 224 for target of 230. Maintain stop loss at 222 
ZEE (Sell): Sell Zee Entertainment near 361 for target of 354. Maintain stop loss at 366 
  • The profit calculations are done considering Futures 1 Lot in each scrip. 
For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com