Our
calculations and analysis in our previous post again came true in the last week
as the benchmark index scaled new all time high. The Nifty continues to be in control
of bulls and may continue to make all time highs yet again. However, it may
also be kept in mind that the settlement of January F&O series is due on 29
January and this week being a truncated week due to holiday on 26 January, a
bit of down-side sudden cuts here and there cannot be ruled out. But still one
may assume that all is well for as long as the Nifty rules above the 8838 mark,
for day traders and as for short term traders, they should buy Nifty puts of
February series as and when the Nifty hits the levels of 8950 and get out of
the puts on every opportunity. It can, at best, be safely assumed that Nifty
will consolidate between 8945 and 8645 with intermediate supports at 8815,
8754, 8720 and 8645 and resistances at 8877, 8901 and 8945.
On the
flip side if it falls below the immediate support of 8610, then it will cut
further down towards the next supports of 8477.
The
intra-day traders and the short term traders may trade accordingly keeping the
above points in mind throughout the week and get out around the resistances and
supports, as indicated.
The
mid-term investors, are advised to keep selling stocks in every rise in small
quantities irrespective of whether the stock owned is at a premium to their
buying price or not and get their holdings converted gradually into cash.
Feel
free to write to us for our free advice regarding the stocks which you
already hold in your portfolio. Kindly send the quantity and price at which you
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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