Stock picks and trading tips for the week January 2 2017 to January 6 2017

We begin the year by wishing all the followers of this post 

A Very Happy and Prosperous New year 2017

Though it is not always possible to run profitable in each trade we execute but being successful in three- quarters of all the darts we throw is possible. The underlying condition though is that we ought to brace ourselves to book losses and yet be able to forget it the moment we book as if it never happened and go forward for the next wave. The essential condition of successful trading as well as of investing is the ability to get out of a trade by booking losses before the trade turns against us. We therefore, in order for investors and traders, to protect them against massive losses always advice to put a stop loss soon after the trade is executed. 

Equally important is that we ought to have a mind set of adding to the gaining positions, primarily because everyone else is running after the gainers or gaining instruments while at the same time cutting out the loosing darts.

Let's begin this year on a happy note and try to remain unfazed by our losses through out the year and life, for life is much much big a thing to be ruined by a loss. On the other hand if we are fluttered by a loss and down and out because of it, we are caught in a loosing spiral and any chance of us winning are totally ruled out because in that kind of mindset we are apt to take stupid decisions.  

All that being said, the immediate resistance to the benchmark index, the Nifty is at 8206 and if the Nifty conquers this resistance then it will be headed towards 8329, 8415, 8458 and 8512, each being a resistance on the way up. Likewise, the immediate support for Nifty is at 8165 which if broken may see Nifty slide downwards towards the key support of 8009. If 8009 is breached then we are into a short-term bear grip which implies that the chances of Nifty going down is far more than going up and so one ought to make, under such situation, a short position in every rise.

The day traders may consider going long in Nifty furtures if the spot Nifty trades above 8165 with stop loss at 8150 to book profit when the spot Nifty trades at 8216/8248. They may however short the Nifty futures if the spot Nifty trades below 8150 to cover their shorts when the spot Nifty trades at 8134/ 8103.

The short term traders may consider going long in case of weakness with strict stop loss at spot Nifty's 8000 for a target of spot Nifty's 8206 and add to their longs if the resistance of 8206 is conquered for the next resistance.

The mid term investors may consider buying ITC at 231.75 in small quantity and add more if it conquers the resistance of 246 successfully with good volumes in the immediate week.

Look closely for this post, or still better subscribe to this post (it's free of cost) for we publish any opportunity during the course of the day as soon as it appears apparent to us. 

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.