Tips for traders and investors in the Indian Stock Markets for December 3 2014.

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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