NIFTY View For Week 30 March-3 April
Last 8 trading sessions Nifty has closed in red. Markets are discounting the good news but are reacting to bad news. On Thursday Nifty reacted to the news of increasing Crude Price and fell by almost 200 points in single day. Our support is nicely held by Nifty.
Technical Overview: Last week Nifty made high of 8627 and low of 8269. A range of almost 360 points. This
is huge range. The weekly chart has closed with big red candle. This is
suggesting that markets will trade in pressure for some days to come. Markets go through periods of expansion and consolidation.
The period gone by is downward expansion. We may expect some
consolidation in the form of a pull back in week to come. Markets may
trade with positive bias in coming week. You might have noticed that
markets have reached our support area. Short term traders can enter in
some long trades but with strict stoploss. However this small upward movement may not be taken as uptrend. Medium term traders can sell on rise.
Our support of 8326-8236 remains intact. Next support is at 8155-8060. New resistance is formed at 8550-8630.
Short Term (Few days to a Week) : On hourly chart Nifty is showing some symptoms of recovery. Short term aggressive traders may buy Nifty at current level for target of 100 points
Medium Term (Few weeks to a month): Medium term traders may sell Nifty near resistance of 8550. This trade has potential to give a target of 200-250 points.
Long Term (Few months to Year): Long term investors must not confuse this downtrend
with the bear market. This can just a correction in Nifty and can last
little longer. Long term investors should use this opportunity to
accumulate good stocks.
Bank Nifty has moved below its support last week. But
it has show good recovery on last trading day of the week. We can
expect a good bounce in Bank Nifty and Banking stocks in coming week.
Overall sentiments remains negative.
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Last week Target achieved in COLPAL and HAVELLS and Stop-loss triggered in AUROPHARMA. Total Profit 9,500.
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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