Saturday, December 27, 2014

NIFTY View For Week 29 Dec -2 Jan 
Wish all readers of this newsletter a very Happy, Healthy and Wealthy New Year 2015. 
In year 2015 let's resolve to-  
1. Learn the way 'Market Expert' trade  
2. Trade with good Money Management and Risk Management  
3. Trade for Consistent Profits  
4. Trade with a proper Trading Plan 
Today onwards we are adding a new section to this news letter -  
'Learning Curve' - I will be writing on topics that a trader need to adopt to his trading routine. The topics can be quality/ discipline / method / caution / technology. Hope traders would like it and would gain some benefit of it. 
We had hinted at range bound market with negative bias for last week. We had also hinted at small downside to Nifty. Last week was week of F&O expiry. World over the traders are in holiday mood due to Christmas and new year. As expected market have not shown signs of major movement. This is expected to continue till the end of new year bash. 
Technical Overview: Last week Nifty made high of 8365 and low of 8147. This was roughly a range of 220 points. Nifty has respected our resistance of 8350 and moved down from there. On the last trading day of last week Nifty has given a small sign of recovery. However this recovery may not last long. We keep our stance, that if Nifty breaks our resistance of 8365 convincingly, then it can move up to 8500. Support is near 8100-7960. A range bound market activity on cards for next few days. This range is 8365- 8100.       
 Short Term (Few days to a Week) : Traders may like to avoid trading for week to come. Unless Nifty gives us clear direction. Very aggressive traders may sell Nifty near 8250 for target for 8150. If Nifty breaks above 8365 convincingly, you may go long in Nifty future for target of 8500. 
Medium Term (Few weeks to a month): I expect Nifty to remain within the range of 8600-8100 for a month or two. Medium term Traders are advised to sell Nifty if it moves to 8500 of target of 200 points.  
Long Term (Few months to Year): The bull run in long term is very well intact. The current correction is an opportunity to accumulate the value stocks at lower level. We are very positive on Nifty continuing its upward rally this correction is over. However correction can stay here for some more time to come.                                                                                                                               
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View on Sectorial Indices:  
BankNifty is holding Nifty from fall. It has resistance near 18900. If this resistance is broken convincingly it may move higher. However, if this resistance is not broken a dip up to 18300 is quite possible.  
CNX IT still not showing strength and may remain range bound 
To receive this Newsletter by email drop us a mail on bonvistaplanners@gmail.com   
Recommendations of the week: 
Last week Net Profit - 11,875/- 
Union Bank (Buy): Buy Union Bank near 241 for a target of 247. Maintain stop loss at 237 
CIPLA (Sell): Sell CIPLA near 623 for target of 605. Maintain stop loss at 636 
HINDPETRO (Sell): Sell HINDPETRO near 541 for target of 528. Maintain stop loss at 554 
  • 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 
Learning Curve: 
Start trading with a small capital. Whether you earn profit or not, ensure that you do not loose money in trading. Trading is very simple while looking at it superficially, but has lot to learn about. One of the biggest mistake traders do is to ignore learning part. As pressing Sell and Buy button is very easy. To start with do a simple thing. Prepare a trading plan with fix objective. A trading plan can have following things: 
  1. Reason / Objective for trading 
  1. Amount Invested 
  1. Segment to be traded 
  1. Trades per day 
  1. Max risk/loss per trade. Max loss per day 
  1. Max Profit per trade. Max profit per day 
  1. Max draw down in the capital invested 
  1. Profit loss Ratio 
  1. Amount invested per trade 
  1. Read the plan everyday and fine tune it. 
Preparing a trading plan can be most boring job. But we are not here for getting entertained. Don’t do trading for the satisfying your thrilling quotient. It can be dangerous.