Just as we had expected in our previous weekly post, the Nifty did go volatile with negative bias going to as low as 7241.50. The nifty will face immediate resistance at 7466 which if conquered then it may be construed that an intermediate bottom has already been made and Nifty will aim towards higher resistances at 7693 and 8094.
On the flip side the immediate support is at 7314 which if broken then the bearish trend may sustain a bit more till it touches 7150.
It may however be kept in mind that the settlement of January F&O series is on 28 January 2016 which might bring about a lot of uncertainty this week and one may utilize this to take positions in February series.
It may also be remembered that this will be a truncated week on account of holiday on 26 January 2016, being Independence Day.
That being said the intraday traders may trade it on the long side with stop loss at 7390 to unwind the longs at 7466. If the Nifty trades below 7390 then they may short the nifty to cover it at 7320.
The short-term traders may form long positions in the February series with stop loss at 7300.
The mid-term investors may consider buying Asian Paints at 844.15 and Goldman Sachs Nifty ETF at 742.26.
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.
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