NIFTY View For Week 2 -6 March
A
very volatile week is behind us. Finally confirming to the sentiments
of Bulls. Longer term trend should always be your primary direction.
Bulls are not willing to give up. World markets traded steadily with
positive bias. No clues from there. What is next destination for Nifty?
Technical Overview: Last week Nifty made high of 8941 and low of 8670. A range of almost 270 points. Nifty closed near high of the day and the week. However we are trading near all time high of Nifty. Nifty may face
small struggle to cross its all time high. So the next destination for
Nifty is expected to be somewhere in the range of 9400. This may not
come immediately. For the week to come there are 2 possibilities - 1. If
Nifty takes pressure at Small Resistance at 8980,
mentioned on chart, Nifty can trade range bound for the week. 2. If
Nifty breaks and closes above all time high it may gain additional
200-300 points.
Nifty has support near 8570-8450
Short Term (Few days to a Week) :Nifty has nice support at 8830. Trading on long side may be done in Nifty. One can buy Nifty at this level for target of 8930. Has short term support at 8750.
Medium Term (Few weeks to a month): Medium term traders can start accumulating Nifty on dip. If Nifty crosses small hurdle at 8980, it may give rally of 150-200 points
Long Term (Few months to Year): Nifty long term up trend is intact.
View on important Sectorial Indices:
Bank
Nifty is trading near its resistance. However for medium term view
remains bullish. Before moving up, it may take small dip.
After a small correction, IT Index looks like its ready for next up move. One can trade on long side in IT stocks.
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Recommendations of the week:
Last week Target met in BHARTIARTL. In BHEL Tgt missed by just 25 paise, so considering it as loss. Stop-loss Triggered in CANBK. Total Los 11,500.
WIPRO (Buy): Buy WIPRO near 659 for a target of 670. Maintain stop loss at 650
SKSMICRO (Buy): Buy SKSMIRCO near 437 for a target of 450. Maintain stop loss at 425
MARUTI (Buy): Buy MARUTI near 3621 for target of 3695. Maintain stop loss at 3560
Above prices are spot prices and profit/loss calculated with 1 Futures lot
Learning Curve:
While
Trading in Futures, risk management becomes most important. Futures is a
leveraged instrument. It means that you get to buy shares worth almost 5
times the value you pay. In other words one has to pay only, say, Rs 20 to buy shares worth Rs 100. In this scenario, your risk and reward are calculated on Rs 100. But for you as a trader, the effect is on Rs 20. It means the loss or profit you make is on Rs 20. Hence while trading in Futures risk management becomes more important than any other instrument.
For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com
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