NIFTY View For Week 16 Feb -20 Feb
Bulls
are back in action. Last week Nifty bounced back from its strong
support. Delhi election news (Defeat of BJP) was discounted by market
one day before actual results. Retail traders who would have shorted in
anticipation of a fall would have had tough time. But that’s how the
markets run.
Technical Overview: Last week Nifty made high of 8822 and low of 8470. A range of almost 350 points. That’s
a big range for Nifty in a week. After a one way rally markets usually
tend to pause. One such pause may be experienced in coming week. We have
Budget in last week of February. Before budget markets may run in
narrow range with positive bias. Resistance is near 8975. Support is at
8700-8600.
Short Term (Few days to a Week) : For a short term trading I would look at buying at buying Nifty. Buy Nifty near 8750 for a target of 8860.
Medium Term (Few weeks to a month): Medium term traders can buy Nifty near 8750 for a target of 8940
Long Term (Few months to Year): Nifty long term up trend is intact.
View on important Sectorial Indices:
Bank Nifty may further rally upto 19700. At this level BankNifty has substantial resistance. Traders can book profits near this level. PSU Banks can be traded on long side for next 1-2 days.
IT Index continues its rally. It may pause for while before continuing rally again.
Next week PSU Banks, Pharma, and FMCG can give opportunities on long side.
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Recommendations of the week:
Last week Target met in ACC and YESBANK. Entry not Executed in TATASTEEL. Total Profit 22,750.
HDFC (Buy): Buy HDFC Ltd near 1269 for a target of 1310. Maintain stop loss at 1240
SUNPHARMA (Buy): Buy SUNPHARMA near 940.5 for a target of 960. Maintain stop loss at 928
PETRONET (Sell): Sell PETRONET near 188 for target of 183.6. Maintain stop loss at 192
Above prices are spot prices and profit/loss calculated with 1 Futures lot
Learning Curve:
Novice
traders are usually in a hurry to book the profits. While in trading
it’s a good idea to book the profits, you should allow the stock to run
up sufficiently before exiting. An early exit from profit making stocks
is usual tendency which limits the profit. Many time traders end booking
more losses than the profits. Let the profits run. Don’t come out of
money making stocks so early.
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