Our support of 8503 did hold in the
previous session as the benchmark index bounced up from the low of 8504.65.
However if this support gets breached somehow in the ensuing sessions then the
Nifty will head towards the next intermediate support of 8456. On the other
hand if the Nifty manages to stick its head above 8525 levels, then it will
bounce back with immediate resistances at 8540 and 8577. Above 8577, one may
expect to see short covering kicking in, in which case the index will be
propelled towards yet new all time highs. However, a breach of the support of
8456 will see fresh shorts in the system which will push the index down to 8435,
8417, 8229 and 8067.
The intra-day traders may go long if the
Nifty trades above 8535 with stop loss at 8520 to book successive profits at
8577. However if it trades below 8520 in the wee hours of trade, then they may play
it on the short side and book successive profits at around 8503 or at 8456.
In case of weakness, the short-term
traders may consider buying back the Nifty 8700 Calls of December series that
they might have sold earlier as per our advice. They may also consider adding
long positions in Nifty with stop loss at 8456. However in case of a breach of
8456, they may open fresh shorts.
The mid-term investors may consider
exiting Bank of India by offering it at 318.55 and bid for Bank of Baroda at
1040.90, LIC Housing Finance at 407 and Marico at 310.05; all these stocks in
small quantities.
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people have lost a lot of money in Capital markets due to their need to get
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emotional excitement, over which they have no control. The sole intention of
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losses.
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writers of this column do not personally hold any stock or position in the
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