Trading tips for the week January 18 2016 to January 22 2016

The market did behave very much in expected lines as we had indicated in our previous post that the Nifty after an initial upside will go down. We expect the Nifty to behave very much like it did through out the last week as we had written in the previous weekly post albeit that it might my turn a wee bit more volatile and show more of a downwards bias.

The nifty will have to conquer the immediate resistance of 7538 above which the Nifty will face resistances at 7764 and 7990. On the downside the supports are at 7458 and 7150. As of now there are no signs of the selling pressure relenting.

The intra-day traders may consider going long in the opening trades to book profit at 7475. However, unless it trades above 7580, they may short the index to book profit at 7406.

The short-term traders may continue to play on the short side to book profits at 7458. However, if it trades firmly above 7540, they may go long to play it till 7665.

The mid term investors may consider buying Asian Paints at 850.60 and 833.05, HDFC Bank at 1033.15 and 1013.15, LIC Housing at 440.75, Lupin at 1657.10, Goldman Sachs Nifty ETF at 747.16 and Zee at 399.35.

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.