NIFTY View For Week 24-28 Aug
Nifty
gave up to global selling pressures. Rupee depreciation added to the
fear. Nifty broke below the range which was mentioned in this post last
week. Markets are entering in FNO expiry week. What next?
Technical Overview: Last week Nifty made high of 8530 and low of 8225. A range of 305 points. On
weekly chart Nifty closed with big red candle. Nifty broke crucial
lower range of 8300 and closed below this level. Since there is F&O
expiry in coming week we can experience choppy market conditions. Short
unwinding can take markets to higher level. However this will purely be a pullback in current down-move. The upward range can be till next resistance at 8425-8520.
I feel markets are in intermediate downtrend. Though a small upward move on account of short unwinding can come through. This
downtrend is expected to remain intact till Nifty cross 8650. This
downtrend has may take Nifty to next support level of 8125. Lower end of
this support range is at 7940.
Short Term (Few days to a Week) : Aggressive traders can buy Nifty at current level for target of 8350. Stoploss at 8232.
Medium Term (Few weeks to a month): Medium term traders wait patiently for Nifty to calm down.
Long Term (Few months to Year): Nifty remains in bull market so far.
Bank Nifty: Same view as that of Nifty here. Short undwinding may BankNifty to rise by 200-300 points. However this may not come as a straight move. At-least going short at this level is not suggested though BankNifty is in intermediate downtrend.
CNX IT: Among
all indices IT index is different. This index has just took a pause in
ongoing uptrend. One can remain on long side in selected IT stocks.
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