Bonvista Financial Planners

NIFTY View For Week 4-8 May   

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The correction that was anticipated, has come about faster than the expectations. In-spite of healthy global markets, Indian markets continued to fell. What next?                        

Technical Overview: Last week Nifty made high of 8334 and low of 8114. A range of almost 220 points. I could not write this newsletter last week. For the week 20-24 Apr, I had suggested sell on rise in Nifty. Nifty has been falling consistently for last 10 trading sessions, with an exception of green candles on 22nd and 24th April. Markets cannot fall one way. They run in cycles of Lower Top Lower Bottom or Higher Top Higher Bottom. One such lower top seem to be done. We have support at current level. MACD is showing positive divergence. Bearish Options are facing resistance at higher levels. 

This suggest that that Nifty can take support at current level and a over upward bounce may come about. I expect Nifty to trade with clear positive bias for the week come. Bears should take care of their short positions. 

Support range is 8150-8065. Resistance is in the range of 8400-8500. 

 Short Term (Few days to  a Week) : Short term traders can buy Nifty at current level for a target of 100-125 points. This target should come fast.                                                                          

Medium Term (Few weeks to a month): For medium term traders, there cane be 2 possibilities. 1. Buy at current level and hold Nifty for a rally of 200 points. 2. Sell Nifty near the resistance mentioned above, again for a target of 200 points downward. The short selling may be done only after Nifty gives indication of a bearish move. 

Long Term (Few months to Year): The bull market is still intact. Long term investors should focus on accumulating value stocks. 

 

View on important Sectorial Indices: 

Bank Nifty: We had mentioned support at 17700 in our last post. Bank Nifty is attempting a give an upward move, now, from this level. It can give an upward rally for the week to come. Buy on dip in Bank Nifty 

CNX IT is looking oversold. A bounce is expected from current levels.  

Coming week, bottom fishing opportunities would be ample. 

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For coming Week Bonvista Financial Planners Recommends: 

Last week Target achieved in ADANIENT and  TATASTEEL and stoploss triggered in SRTRANSFIN. Total Profit Rs. 17,125/-. 

ASIANPAINT (Buy): Buy ASIANPAINT near 762.45 for a target of 782. Maintain stop loss at 746 

BATAINDIA (Buy): Buy BATAINDIA near 1019 for a target of 1075. Maintain stop loss at 990 

CESC (BUY): Buy CESC near 548 for target of 569. Maintain stop loss at 530 

Above prices are spot prices and profit/loss calculated with 1 Futures lot   

For any clarifications on these recommendations , you may mail us on bonvistaplanners@gmail.com