Tips for traders and investors in the Indian Stock Markets for October 1 2014.

As envisaged in our previous post, the nifty could not overcome the resistance of 8038.65 (it went up to 8030.9) and we will continue in a bearish short term trend with the lower bound being at 7784, unless and until it conquers the resistance of 8038.65 conclusively. It may also be kept in mind that the market will remained closed from October 2 2014 to October 6 2014. So one may be careful in committing.

The intra-day traders may go long if the Nifty trades above 7990 mark with stop loss at 7970 and book profits around 8022. However if it trades below the 7943 mark then they may play on the short side and book profit at 7915.

The short-term traders may open fresh longs if the resistance of 8038.65 is conquered conclusively with good volumes. They may open fresh shorts if it trades below 7899. We, however, advise them to stay away for the day on account of the long weekend ahead.

Mid-term investors may consider selling 10% of their holdings in each of HDFC Bank at 899.90, HCL Tech at 1741.75. They may also continue to keep Coal India on watch as it seems to be on the verge of a breakout from the current range. A downside may be utilized to accumulate the stock.

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Disclaimer: The writers of this column do not personally hold any stock or position in the F&O market and do not intend to benefit in any way by publishing this column. The final discretion is that of the reader and we disown any responsibility for any loss incurred by the reader.