The bench mark index of fifty stocks, Nifty has turned bullish of late with all the technical indicators like moving average convergence divergence and the stochastic indicating that there is a little more upside left. But with the settlement of May futures and options on Thursday next, which is still eight sessions away, the market may defy gravity and show somewhat incredible flare ups especially when most retail market participants will be expecting a melt down.
That said, the intra-day traders are advised to ride longs and add more if the index manages to stick it's head above the 6191 mark with good volumes. If it trades above the 6191 mark then the resistance will be met at 6210, 6234 and 6267.
The index will consolidate if it trades below the 6191 mark and above the 6165 mark. A dip below this mark will see unwinding of longs as the market will tend to loose some of the recent profits and might go down to 6145, 6112 and 6068.
Long term investors are advised to check their portfolios and start selling all those stocks which are languishing or have been battered out of shape and have not performed in the recent bull run. Please do not add more of these in the hope of downside averaging of purchase price and get rid of them, whatever the loss. From the proceeds of such sale please buy those stocks that have run up with Nifty whenever supply emerges.
Our own recommendations are keep adding stocks like ITC and HDFC Bank and recast your portfolios. We too are doing the same.
No comments:
Post a Comment