NIFTY View For Week 16 -20 March
Very volatile week is behind us. Downfall which began on last Thursday continued in week too. Good news of Insurance FDI tried to support markets on Thursday. But the down trend resumed on Friday in
spite of gapping up. Though the global clues are better, probably
Indian traders feel the markets are over stretched and a correction is
due.
Technical Overview: Last week Nifty made high of 8891 and low of 8631. A range of almost 220 points. Technically, the huge red candle on 4th March pulled markets further down. Big 'Volume Candles'
are leaders and usually decide the trend for next few days. On weekly
chart Nifty has formed what may be termed as 'Evening Star". This gives
us Bearish Signal. Markets may move further down. However after a
continuous fall for last 4-5 days, it may see a relief rally or a consolidation. But the sluggish trend seems to stay for more time.
Short Term (Few days to a Week) : The trend is down. Short term traders are advised to sell on rise in Nifty. One can go short in Nifty near 8730 for target of 8660.
Medium Term (Few weeks to a month): Medium
Term traders wait patiently for Nifty to rest near support. One can buy
near support only after it give symptoms of up move.
Long Term (Few months to Year): Golden
opportunity for Long term investors. Nifty correction can be utilized
for buying value stocks. We are still in Bull market.
Bank Nifty
may see some consolidation after this fall. However trend remains that
of correction. One can wait patiently for Bank Nifty to find support.
Short term traders can sell on rise near 19000. Support is at 18500
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Above prices are spot prices and profit/loss calculated with 1 Futures lot
I am discontinuing Learning Curve in this article. However the same will be continued in a separate post on my Blog. Keep watching this space (My Blog- http://bonvistaplanners.blogspot.in/)
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