Our resistance of 7955, as stated in our weekly post, did act as a strong stopper. The benchmark index went up to 7992 levels twice and then slipped back failing to hold above the mark on closing basis with volumes. If 7995 is conquered this week then one may expect it to soar all the way up to 8143. However, for such a scenario to be in place, Nifty must consistently trade above 7920. Otherwise there are chances of upside being capped in the immediate term. The immediate support of Nifty is at 7817 which if broken will see it go to 7690.
The day traders may go long if Nifty trades above 7845 to book profits at 7890. However, below 7840, they may go short to cover at 7810.
The short-term traders may go long only if the resistance of 7920 is conquered to get out at 7955. They may however open fresh longs if Nifty manages to cross 7965 conclusively on closing basis with good volumes on more than one occasion. However if Nifty slips below 7800, they may short nifty for a possible target of 7700 and 7630.
The mid-term investors may consider the current market as a sell on rally kind of market and buy on dips, in the key stocks. They may stay nimble footed and behave more like the short-term players, booking profit here and there. The lower bounds of the stocks are Eicher Motors at 19000, Grasim at 3720, HDFC Bank at 1050 and Hero Motors at 2800.
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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