Saturday, December 20, 2014

NIFTY View For Week 22 -26 Dec 
After a steep fall, market tried to recover last week. We had mentioned about a support at 8000-7800. We had also mentioned about a relief rally. This relief rally has come in last 3 days. Global markets also tried to recover during this period. We have F&O expiry in coming week. Do we say that the correction is over? 
Technical Overview: Nifty has held support of 8000-7800. The pullback took back Nifty to close at 8225. Last week Nifty traded in the range of 7961-8263. Nifty closed near its high on last day. This pullback has strong resistance at 8270-8350. We expect Nifty to hold this resistance and move down. However, downside may not be substantial in coming week. Nifty may trade choppy in a range with negative bias. A new support is formed near 8040. Hence the trading range can be 8350-8040. 
If resistance at 8270-8350 is broken, Nifty may move up to 8500.           
 Short Term (Few days to a Week) : We need to understand the trend for short term. The upward pullback may fizzle out near current level. From very short term perspective Nifty can be sold at current level or near first resistance mentioned above. However week of expiry may not allow Nifty to move one way. Hence an exit with a very short term target is advised.  
Medium Term (Few weeks to a month): Nifty may remain range bound with negative bias for next week. I maintain the sell recommendation on Nifty future when it reaches 8270. This move can give us target of around 250 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:  
Bank Nifty has shown strength during this Nifty fall. It has recovered nicely during in the end. Bank Nifty has resistance near 18760. If this can held, it may move down to 18000. 
IT Index is looking weak. Rally may not be sustained in other indices too. 
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Recommendations of the week: 
Last week target for Adaniport is achieved, Sl triggered in Ambuja and Zee, Net Profit - 3000/- 
IFCI (Sell): Sell IFCI near 35.50  for a target of 34.30. Maintain stop loss at 36.70 
IRB (Sell): Sell IRB Infra near 250 for target of 243. Maintain stop loss at 255 
DRREDDY(Buy): Buy Dr Reddy's Lab near 3199 for target of 3260. Maintain stop loss at 3160 
  • 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