Trading & Investing Tips for the Week January 19 2014 to January 23 2014.

The Nifty is very much in bullish territory and it does not look like the bulls are in a mood to quit and intend to take the benchmark index to new all time highs. Although a few downside sudden cuts here and there cannot be ruled out during the week, one might assume that all is well for as long as the Nifty rules above the 8240 mark on closing basis in which case it will consolidate between 8260 and 8553 before it will go up north to touch as high as 8700 with intermediate resistances at 8511 and 8613.

On the flip side if it falls below the immediate support of 8348, then it will cut further down towards the next supports of 8240 and then towards 8178. Other intermediate supports for traders will be at 8470, 8410, 8385 and 8348.

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.

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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