Dear All,
Nifty Spot has manged to close above 4850 last week and is holding above the level on the start of this week. Stay long for a short pull back as long as the index stays above 4850. On the weekly chart we could see a hammer formation in Nifty supporting a short pullback in the index. TRM indicates, there won't be much movement in the index for tomorrow too which coincides with the last parliamentary session an event which mkt expects very keenly. The charts are indicating the range of 5050 - 4850 for this week. Remember again this is a short pullback only and there is no indication of market getting bottomed out so far. The pull back is also supported by a raise in traditional indicators. Market breadth supports the buyers more than the sellers, short term traders can make use of this opportunity to trade longs for quick gains.
Bank Nifty in this pull back can test to the levels of 9740, and chart reading says it will be in the range of 9200-9700. PSU Banks are best for short gains, our top pick remains with Bank Baroda and SBIN. SBIN will be in the range of 1950 - 2100.Bank Baroda will have a first resistance at 670, above which the stock can test 710 levels.
AUTO - is weak but in the over all pullback can participate a little, though stock specific longs can be initiated in this sector, one should not be aggressive in AUTO.
FMCG & PHARMA will be in the sideways and hence traders should be more stock specific than sector specific. My pick of DIVIS LAB, still remains the best bet in Pharma.
INFRA will offer a good bet in this pullback and traders can make quick bucks in this sector, stay long with the leaders, LT is the good pick in this sector and we can expect the stock to test 1200-1240 levels.
REALTY is too can give a chance for a short long trade. My pick is DLF stay long with the stop at 185.
Although MIDCAPS have beaten up heavily, I don't see any good raise across the midcap stocks, and hence I suggest to avoid midcaps. Traders can go for it with intraday view, can can choose some quality stocks for short deliveries.
Though METALS gives a pullback with the kind of weakness it exhibits, it is better to short sell near resistance than to go for longs at supports.
To conclude, I would like to quote what scott adams says "Nothing defines humans better than their willingness to do irrational things in the pursuit of phenomenally unlikely payoffs. This is the principle behind lotteries and religion." So, dealers/traders, trade with rational mind than getting messed up with emotional mind.
Wish you a Happy Trading!!
Thanks and Regards
Rohit Saxena
Losers say it is hard and impossible, but winners say it is hard but not impossible." Rohit Saxena
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