The Market has not been able to revive from the previous week’s falls. Monday was another gloomy day. However, during the closing hours on Tuesday, the market saw some sharp recovery and bounced nicely. IT sector emerged as the biggest gainer of yesterday’s session. On Wednesday, till the time of writing, the market has been trading rangebound. There are a bunch of diverse reasons for a gloomy market as the January expiry nears. Weaker Q3 numbers, bleeding of financial stocks, US-China trade talks, Cobrapost’s alleged scam of DHFL are primary among them. In January, Nifty has underperformed all its global peers and remains to persist its bearish nature. So, in this gloomy weather, SHYAM ADVISORY brings to you NIFTY TREND which may end up as winning bets.
NIFTY 50: On a monthly chart, Nifty has been trading below its MACD level. Nifty 50 formed a bearish candle on Monday slipped below 10700. 36. Out of 50 stocks in index ended up lower, representing a negative market breadth. A small pullback is still possible if the index manages to get out from the immediate resistance level at 10700, which was initially at 10850-10900. A sizeable bearish candle has formed with a lower high-low formation indicating weakness. As the B-Day, nears, buyers are going to remain skeptical and the market may see a big fall. Our this week’s Nifty tips is to short NIFTY and as it attract its seller.CMP:10675; TARGET: 10580.
NIFTY BANK: Nifty bank opened negative and continued to trade lower, forming a lower low for the fifth consecutive session. Our Bank Nifty Tips for our customers gave high profits. Nifty private bank index fell 2% with ICICI BANK and YES BANK among the top losers. PSU bank shares traded lower on Monday morning session. Most of the private banks were trading in Red. Although it has gained significantly on Wednesday, the sentiment remains largely negative. There may be a significant slippage on the expiry day, Our Bank nifty tips is to sell it with a trailing stop loss. CMP: 26820: TARGET: 26000
NIFTY Option strategy: As the market is yet to fully recover from the liquidity crunch and the elections coming, the trader would turn their fox ears up. They would like to avoid every possible chance of a high-risk trade and Nifty is most likely to trade range bound. During February, we will be posting regular Intraday Tips. Our outlook on Nifty remains largely bearish and unless it is a highly populist budget, Nifty would see a significant slide. Our Nifty options tips will be to Buy Nifty 10700 put (Feb Expiry) CMP: 199 Target: 280, Stop loss – 130.
As long as market sentiments are not clear, NIFTY is highly unlikely to break its resistance levels placed at 10850 and 10915. Traders can use this trading window to make significant profits, given they keep their stop-losses in place. Stay tuned to our blog for more Nifty tips, Bank Nifty tips and Nifty options tips. The views and investment tips expressed above are given by the analyst, and should not be seen as investment calls. Please follow your discretion before making the investment.