Nifty runs a 400pt from its low 4967 to 5366 in 9 days; Liquidity is coming back in market; Be stock specific; Southwest monsoon gets a decent start; Markets turn buoyant on global cues.
The market opened with wide gap up yesterday on the back of strong cues from the Asian markets which were fuelled following the Chinese government’s move to allow more flexibility to the yuan against other currencies. The Chinese move to end the yuan’s peg against the dollar triggered hectic buying across Asian markets leading to a buoyant start for stocks back home. Further, the government’s move to resolve the ULIP issue coupled with the satisfactory progress of southwest monsoon contributed to the upbeat mood. Both the indices touched their highest levels in over two months with the Sensex closing at 17876 gaining 305 points after hitting a high of 17919 in intra day trades. The Nifty closed the session at 5353 gaining 90 points a few points off the day’s high of 5366.
The daily chart of Nifty is showing that it has been rising into the “Raising Channel” for past few trading sessions. Yesterday the bulls managed to hold Nifty above 5350 bullish pivot. The volumes were also good indicating that the strength in Nifty is likely to continue for coming one or more sessions. Its only 33 points in Nifty to make a new high (5399). So on the upside, a breach of 5400 would open the gates for 5490. However, if Nifty breaches 5280 a short term correction can not be ruled out. So traders are advised to maintain stop loss at 5280 for their long positions. Intraday, Nifty support is 5320 and the resistance is 5380. If Nifty breaks 5320, it may go down to 5300 and 5280. However, if it is able to maintain above 5380, intraday trend will be positive and it may test the level of 5400 and 5440.
Buy Provogue and hold for 7-10 days;
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