With the key support of 7882 gone, we are headed towards the next support of 7586 unless of course, short covering kicks in. We are of the opinion that that some hedge fund has gone berserk due to bad decisions and is selling to carry it's losses elsewhere, where it believes things will change. Nevertheless, the moot point for us is at which point should we pick up the stocks and what trading strategy should we adopt. On this count, it is alarming that, the settlement of August F&O series expiring on August 27 2014, one need be careful of not being tricked into buying or selling.
Keeping that in mind, if the Nifty trades above the 7885 mark in the wee hours of trading tomorrow, then there is a some hope for the bulls and one may go long to book profits at 7935. Otherwise, if it trades below 7780, then they may short the Nifty to book profits at 7705.
Short-term traders may abstain as they market is weak yet oversold and therefore the direction can't be predicted as of now.
Mid-term investors may consider buying HDFC Bank at 914.20 and LIC Housing Finance at 389.75 or 375.20.
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.
No comments:
Post a Comment