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

The Nifty behaved quite in expected lines and as we had envisaged in our previous post the resistance of 8372 did get conquered resulting in a gap up opening and flash rally in the previous session due to short covering and also because the  support of 8256 held in closing basis. However, if the benchmark index sustains above the 8500 mark in today’s session then one might expect new all time highs. On the flip side if it falls below the intraday support of 8465, then it will consolidate above the immediate support of 8347 albeit with sudden deep cuts.

The intra-day traders may go long if the Nifty trades above 8500 to book profit around 8545. Otherwise they may play it on the short side to book profit at around 8437.

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 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.

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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

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