Nifty: At cross-roads with bearish bias
Nifty lost more than 2 per cent during the week and fell more than 200 points from the highest level...
Nifty lost more than 2 per cent during the week and fell more than 200 points from the highest level indicating huge selling pressure at higher levels. Further, Nifty closed below 200 DMA suggesting long term bearishness. However, technically there is a strong support around 5550 which too Nifty breached on Friday on intraday basis. Considering the above, and the political developments that can take place in view of the nearness to elections, stock market cannot be expected to do better. Further, FIIs had invested heavily during the last year and might go slow in the current year in view of the political uncertainties ahead of elections. Quarterly results season would be commencing from this week and would influence scrip specific action. Market is at cross roads near to strong support zone, though below 200 DMA, and hence needs to be keenly watched for further direction. Technically, as Nifty is below all important opening level of the month, it is bearish and would turn bullish for the month/financial year only on a weekly close above the open. Better to follow scrip specific approach for investment which qualify for "Value Investing". Short term traders need to be ever vigilant tracking short term movements and investors with medium and long term outlook can invest in quality stocks on SIP basis. However, in case of Nifty trading is below 5500, investment also may be deferred as further fall is quite possible. For the coming week, Nifty spot is expected to face resistance at 5625, 5705, 5780 and find support at 5480, 5405, 5330. Nifty, presently in bearish zone would get out of the same on a close above 5650. Advice for Traders Nifty is Bearish but close to strong support level. Hence, if Nifty closes/continuously trades below 5550, short positions can be initiated with a stop loss of 5650 initially and may be trailed later on.
16 Sep 2019 3:51 AM GMT