Trading & Investing Tips for the Week February 2 2015 to February 6 2015.

The accuracy of our analysis and prognosis in our previous post was proved once gain as the benchmark index continued to scale new all time highs. We had also advised the followers of this blog to buy Nifty Puts of February series and as the Nifty slipped below the support of 8838 mark just before shutting shops on January 30 2014, we presume that those who followed our advice must be running in good profits. What remains to be seen is that unless and until the Nifty bounces back in the forthcoming session and rules above 8795 we are headed towards 8421 with immediate supports at 8735, 8660, 8615 and 8526. On the other hand the immediate resistance is at 8911 which if conquered will see Nifty shoot up North due to short covering. Otherwise we are into a short term consolidation phase within the range 8421 to 8911.

The day traders and short term traders may trade accordingly keeping the above points in mind throughout the week and get out around the resistances and supports.

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.

They may also consider buying back HDFC Bank, ITC and LIC Housing Finance in case of a selloff in these counters.

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 bought them. Much better, subscribe by email. It is free. And, what is more, we do not disclose your IDs or portfolio. 

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.