NIFTY View For Week 12 Jan -16 Jan
I could not write this blog last week due to some unavoidable assignment. During last 2 week markets have experienced Roller Coaster Rides. World over markets are experiencing such volatility. However Nifty is bouncing from the lower levels with equal upside force. There are willing buyers at 8000 Nifty level. What do we expect next?
Technical Overview: Last week Nifty made high of 8445 and low of 8065. This was high magnitude a range of 380 points. The medium term support at 8100-7965 is intact in Nifty. The broad range between 8100-8600 is on cards. We are currently trading at the middle of this range. On Friday we have seen nice pullback from
lower levels. This gives us positive hunch. However Nifty has
resistance at 8400-8450. We hope Nifty will rise to this level in next
2-3 trading sessions. If it breaks 8450 Nifty may move to 8500-8600. New support is formed near 8120-8060.
Short Term (Few days to a Week) : Short term trend is positive in Nifty. Traders can go long near short term support of 8250 for target of 8350.
Medium Term (Few weeks to a month): Trend
is positive in medium term too. One can go long in Nifty for target of
8400. However this need to played quite cautiously till Nifty is in the
range we have mentioned earlier.
Long Term (Few months to Year): Strong
buying at bottoms is usual sign in Bull markets. We may be at a
juncture at which buying can give us the best returns ever. I hope our long term investors would have bought some value stocks at near this bottom. We are bullish on Nifty in long term
View on important Sectorial Indices:
BankNifty is looking good till 19000 level. Buying can be done in Banking stocks and BankNIfty
CNX IT bounced back from a pullback and may move up to 11700.
Overall indices are showing positive signs.
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Recommendations of the week:
No Trades fro Last week.
WOCKPHARM (Buy): Buy Wockhardt Pharma near 1077 for a target of 1100. Maintain stop loss at 1050
HEXAWARE (Buy): Buy Hexaware Technologies near 209 for target of 214. Maintain stop loss at 206
AURPPHARMA (Buy): Buy Aurobindo Pharma near 1169 for target of 1190. Maintain stop loss at 1150
Learning Curve:
Following a fixed strategy for trading is advised. If, trader
keep on changing the strategy, may always loose the money in market.
For you to be consistent winner in market, following one strategy with
fixed set of parameters is must. There will be good periods and bad periods
for your strategy. However, the good periods will earn you profits that
will wipe off all the losses. Losses are inevitable. But keeping losses
under control is in the hands of trader. In the next article we shall
learn more about Risk Reward Ratio.
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