Nifty for the week May 16 2016 to May 20 2016

That the benchmark index did not breach the 7629 support and mostly remained above the 7769 mark throughout the week and on closing basis implies that the markets are not weak although a few technical parameters of the market did give a weak signal post the previous session. However, the weakness can only be confirmed of the Nifty trades below 7798 mark in the opening session and trades below it with volumes.  On the other hand the index must remain above 7865 mark to stay in the bullish mode in the opening trades.

The day traders and the short-term traders may trade accordingly. If the Nifty stands above 7865, then they may go long with stop loss at 7815 for a day target of 7903 and short-term target of 7956. They may however go short if Nifty trades below 7798 with stop loss at 7830 for an day target of 7772 and short-term target of 7832 and/ or 7769. The short-term traders may consider going long in Asian Paints with strict stop loss at 910 for a possible target of 972.

The mid-term investors may consider adding Grasim at 4167.20 and 4094.60 in small quantities. They may also consider buying Eicher Motors at 18968 and 17055 in small quantities. They may consider offering HDFC Bank at 1165.85 and 1178.15 in small quantities.

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.