NIFTY has rallied on the verge of short covering and some positive measures new RBI governor from the lows of 5118 - 5900 odd levels. The Index has rallied more than 750 points in 9 trading sessions.
Nifty 76.4% retracement of the fall from 6093 - 5118 is around 5860 - 65 which can act as immediate resistance for the index now. As there is not much positive triggers to boost the rally further . Today although index has rallied around 220 points on the ease of tensions in Syria choppiness can be seen in near term.
NIFTY Daily chart
Is there more steam left in the rally? The market is anticipated turn choppy from current levels. So short term traders in NIFTY those of who have missed the rally its advised to avoid fresh long at current levels as risk/reward is not favorable. One is also advised to pick individual stocks on dips. Avoid public sector banking and pharma sectors.
The long traders are advised to book part profits around current levels and revise stop loss of of 5750 above 5865 on closing basis consistently can lead to 5980 - 6000 above - 6080. The positional short traders can initiate short positions from current levels around 5880 - 5900 up to 5950 with stop loss of 6025 for targets of 5730 - 5610.
Trade objectively and wisely with the consideration of own risk with amid volatility. The strategy would be to wait patiently for the right opportunity to unfold to probable profitable trade setups.
Raju V Angadi
Equity Research Analyst
To know more about probable counts contact us back on rvangadi@googlemail.com or swing.research5@gmail.com or +91 78291 55900
Disclaimer: This is just an view based on the research of individual for educational purpose. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in stock markets.
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