NIFTY View For Week 9 Feb -13 Feb
Last
week we had hinted at downside to broader markets. Nifty is falling for
last 6 trading sessions. This time the global did not have anything
that has caused this fall in Indian Markets. We
had RBI monitory policy in last week. The RBI policy could not change
the market mood. We shall have IIP and Inflation data in coming week.
Technical Overview: Last week Nifty made high of 8840 and low of 8645. A range of almost 200 points. Markets run in cycle of Higher Top Higher Bottom (in uptrend) and Lower Top Lower Bottom (in downtrend). One such higher bottom is being formed in Nifty. Nifty is approaching a good support near 8570. We expect Nifty to give small bounce from this level. However Nifty may trade in a range in week to come. It would be interesting to see whether Nifty breaks its all time high to form a higher top. The next support is at 8325-8235. A resistance is formed near 8700-8800
Short Term (Few days to a Week) : Nifty may bounce back from its support near 8570. Short term traders can buy Nifty near support for target of 8660.
Medium Term (Few weeks to a month): I
am sure our medium term traders would have booked profit in Nifty
future today. This week wait patiently for Nifty to take support near
8570. One can buy Nifty at this level for a target of 150 points.
Long Term (Few months to Year): Nifty long term up trend is intact.
View on important Sectorial Indices:
Bank
Nifty might take a support at 18770-18500 range. Once expect a bounce
from this level. Short term trading on long side can be done in Banking stocks.
As indicated, CNX IT (IT Index) has seen a nice run up in last week. IT Index is still looking goood on charts.
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Recommendations of the week:
Last week Target met in HDFC and MINDTREE. Stoploss Triggered in ADANIPOWER. Total Profit 3250.
ACC (Buy): Buy ACC Cement near 1507 for a target of 1550. Maintain stop loss at 1480
TATASTEEL (Sell): Sell Tatasteel near 368.5 for a target of 358. Maintain stop loss at 375
YESBANK (Buy): Buy Yes Bank near 811 for target of 835. Maintain stop loss at 790
Above prices are spot prices and profit/loss calculated with 1 Futures lot
Learning Curve:
A trader must know his risk before
entering into any trade. What is the maximum loss that he is willing to
take if the trade goes against his view. The risk management, from
trading perspective tell us that you can not hold on to loss making
trade. Instead, come out with a small loss and enter into other trade.
If you can not take small losses today, you may have to take a large
loss tomorro.
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