Sunday, October 25, 2015

Can the bulls sustain the gains - NIFTY View For Week 26-30 Oct

Last week I had advised not to be on short side of Nifty and that the bulls have upper hand. Though Nifty could not cross resistance near 8322 as I had mentioned in this post, a close near this resistance suggest that bulls are in control. We have F&O expiry ahead of us. How to trade Nifty in coming week? 

 Technical Overview: Last week Nifty made high of 8328 and low of 8217. A range of 110 points. This is a small range. From very short term perspective we can assume that bulls are seen exhausted and not finding it easy to cross the resistance at 8322, though from medium term perspective bulls have control over bears. 
Bears have still not given up. Bulls can take markets up to 8400. But even at this level Nifty would face stiff resistance to move up.

The question is can we see some dip from here? Or will Nifty move up and reach level of 8400. 

This is what I feel: Currently there is no major news on which Nifty can react. Corporate results are causing mixed sentiments "Kahi hushi Kahi Gum", however on 5th Nov, once the BIHAR polls are over, much depends on result of Exit polls. Let's expect Nifty to give us clear direction.  
From trading perspective we expect choppy market conditions in coming week. It is not easy to trade these choppy markets. Better to stay away. 

I always ask traders to identify their objective of trading and then decide the amount to risk they can afford to take for that objective. It is not easy to speculate the markets.  

I do not count the returns of my advisory based on couple of calls. I always treat my advisory like a portfolio and count returns for whole month or year depending on objective of portfolio. 
Click here to read more about my "Prime Cash" portfolio. This portfolio invests in Cash socks for short to medium term. 

 I also run trading portfolio in Options for conservative and comparatively safer returns of 3-5% per month. Click here to read more about "Index Options" portfolio.    

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