NIFTY View For Week 26 Jan -30 Jan
Last
week we had indicated at Nifty reaching to 8850. Nifty closed at 8835
on Friday. I am sure our readers would have been enjoying long week end
after money minting one way rally. Coming week we have F&O expiry. Comparatively short week due to republic day holiday on Monday.
Technical Overview: Last week Nifty made high of 8866 and low of 8531. A range of almost 330 points. Nifty
broke out of 8100-8600 range and is trading in extended territory.
Markets spend very less time during big moves. Big moves (up or
down) come very fast. Rest of the time markets consolidate. One such
consolidation is on cards. F&O expiry on Thursday, recent extended
move may keep markets volatile during
the week to come. Major support now emerges at 8570-8450 range. We have
uncharted territory above, hence we do not have valid resistance.
However option data suggest that Nifty may not cross 8900 in Jan f&o series.
Short Term (Few days to a Week) : It
would be difficult to trade Nifty in the week to come due to expected
volatility. However aggressive traders can buy Nifty near 8760 for
target of 8820.
Medium Term (Few weeks to a month): I am sure our medium term traders would have booked good profit in Nifty futures. Nifty may trade sideways with positive bias for some time. We may not like to initiate a trade during coming week in Nifty. One can go long near our support of 8600, if Nifty pulls back to this level.
Long Term (Few months to Year): We
do not know where markets would reach, and what is 'Top'. However
profit booking should be continuous process in markets. This one such
period and traders should book partial profits.
View on important Sectorial Indices:
Bank Nifty is trading in uncharted territory. A small pullback may come before it continuing the rally again.
Defensives may see better run up in week to come. CNXIT, IT stocks may see some good run up.
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Recommendations of the week:
Last week Target met in all 3 stocks we recommended. Total Profit 15250.
BHEL (Sell): Sell Bharat Heavy Electricals near 279 for a target of 273. Maintain stop loss at 288
RPOWER (Buy): Buy Reliance Power near 64.8 for target of 66.8. Maintain stop loss at 63.4
CAIRN (Buy): Buy Cairn near 248 for target of 255. Maintain stop loss at 240
Above prices are spot prices and profit/loss calculated with 1 Futures lot
Learning Curve:
Your discipline will earn you money in market. Every strategy has good period and Bad period. Following any one strategy
consistently shall earn profits. A trader with particular strategy may
not earn profits in Bullish markets, if holds with his discipline can
make money at some other time and make up for the lost opportunity. Hold
with what you are doing. No one is wrong in this market.
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