Quite in line with the expected weakness as envisaged in our previous post, the benchmark index hit our predicted resistance of 8588 and being unable
to conquer it, it became weak and lost quite a bit of the ground before the
close. The positive takeaway was that our support of 8503 did hold inspite of
the fact that all the day’s gains got wiped out completely by the end. The
technical parameters however suggest that a breakout from the range of the last
five sessions seems imminent; the direction of it depending on whether the
supports of 8503 and/or 8456 hold or not.
The intra-day traders may go long if the
Nifty trades above 8577 with stop loss at 8560 to book profits at 8588 and 8610
. Otherwise they may play it on the short side and book successive profits at
around 8503 or at 8456 as the case may be.
In case of weakness, the short-term
traders may consider adding long positions in Nifty with stop loss at 8456.
However in case of a breach of 8456 with good volumes conclusively, they may
open fresh shorts.
The mid-term investors may however consider selling the stocks owned by them in every rise in small quantities ie 10% of their holding each time the market goes up. As for the offer prices at which they should be sold, please write to us regarding the detail of the stocks you hold in your portfolio. Kindly send the quantity and price at which you
bought them. Much better, subscribe by email. It is free.
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.
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