Tips for traders and investors in the Indian Stock Markets for the week January 12 2015 to January 16 2015.

The Nifty did get stopped at 8303.3 mark much in lines with what we had expected, our stop was at 8300. However, there seems to be a little more of an upside. In case if the benchmark index crosses the 8300 mark conclusively with good volumes then one may expect it to go up to the next resistance which is at around 8372 and if the resistance of 8372 is conquered then short covering will see a flash rally which may take the Nifty to new all time high. On the flip side, the support of 8256 if taken out will see the Nifty slide back towards the next support of 8068 and thereafter towards 7955. However we are not out of the woods yet and this may only be considered as a relief rally.

The intra-day traders may go long if the Nifty trades above 8300 to book profit around 8362. Otherwise they may play it on the short side to book profit at around 8259.

The short-term traders may trade throughout the week as per our indication and guidelines in the opening paragraph of this post.

As for the mid-term investors, the technical indicators suggest that a storm is brewing somewhere and may or may not erupt. We advise them to start 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 into cash.

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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.