Trading & Investing Tips for the Week February 16 2015 to February 20 2015.

The key support of 8421 remained unbroken as the Nifty bounced back from 8470.5 and therefore as long as the benchmark index remains above the 8600 mark in the coming sessions, we can safely assume that an intermediate bottom has been made at 8470.5. In such a scenario, the next resistances are at 8862, 8896 and 8930. However, if the Nifty slips below 8795 mark then we will continue to remain in a consolidation phase with the bounds at 8600 and 8795.

The day traders and short term traders may trade accordingly keeping the above points in mind throughout the week. If resistances are conquered with good volumes they may go long and if the supports are broken with volumes they may go short.

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 Axis Gold ETF at around 2568 and 2498.

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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.