16-10-2017 - Index views

NIFTY : 10,256

As mentioned, "The trend is up & the Nifty will go up & one may go long with a Stop Loss of 10,100", the Nifty did exactly in the same manner. The trend is not only up but it is slowly breaking out also which gives the enormous strength to the NIFTY. It does not mean that the NIFTY won’t come down at all but it means that the correction will be a correction in real sense. It might be shallower than we think or it may consolidate in a range for quite a good time & then resume the uptrend again.

In any case, we have to keep a strict Stop Loss of 10,100 for the longs in NIFTY. One may exit in case of the close below 10,100 & again reenter on the close above that. This strategy will be valid till the time new signal & level does not get generated. Since we are on the all time high, there is no past reference for the target but looking at the pace & the behavior, we may assume that 10,500 is very much possible in near future.

Other levels & the trend will be discussed in the next post when the appropriate signal will be generated. Till then, keep the levels handy which we have discussed here.

BankNifty : 24,743.30

There is no change in either view or levels to trade as there was hardly any change in the close as it is flat. You may refer the previous post which is repeated below :

The BankNifty also has given a short term breakout on the daily chart. It looks strong in short term. the BankNifty has trapped in a big trading range. Now the resistance & targets can be set at 24,900 & 25,200 for short / medium term. A strong support zone is at 24,200 to 24,000. One may take 24,200 as a warning bell & start exiting all the longs in BankNifty or any other banks, once it closes below 24,200. A strong close below 24,000 may drag the BankNifty further down. So please keep these broad range & the levels in mind & trade accordingly.

 

15-10-2017 - Index views

NIFTY : 10,192.40

As mentioned in our previous post, we closed above the previous all time high & the recent swing top of 10,188. Now the trend is up. Friday, 13^th October, 2017 low is very important support for very short term. So one may take 10,100 as a support & a short term Stop Loss & go long. The chances are more to go up, just in case it comes down & closes below 10,100, one may exit all the longs in NIFTY & again reenter once it closes above the 10,100. So for any short term trade, the level of 10,100 must be used as a tool to entry & exit. One may take the position of long & short as per their comfort with the levels. New updates on NIFTY will be posted on Monday evening.

BankNifty : 24,732

The BankNifty also has given a short term breakout on the daily chart. It looks strong in short term. the BankNifty has trapped in a big trading range. Now the resistance & targets can be set at 24,900 & 25,200 for short / medium term. A strong support zone is at 24,200 to 24,000. One may take 24,200 as a warning bell & start exiting all the longs in BankNifty or any other banks, once it closes below 24,200. A strong close below 24,000 may drag the BankNifty further down. So please keep these broad range & the levels in mind & trade accordingly. More levels & trading levels will be posted again on Monday evening.

15-10-2017 - SUNDRMFAST

SUNDARAM FASTENERS LTD – SUNDRMFAST – CMP : 510.55

Sundram Fasteners Limited is part of the TVS Group of companies. Founded in 1911 by T.V. Sundaram Iyengar, TVS has grown rapidly, expanding its portfolio to become India’s largest automotive component manufacturer. The group has, over the years, diversified into many businesses, with total sales exceeding USD 7 billion.

Sundram Fasteners Limited, started in 1966 & has grown into a global leader, manufacturing critical, high precision components for the automotive, infrastructure, windmill and aviation sectors. Varied range of products encompasses fasteners, powertrain components, sintered metal parts, iron powder, cold extruded parts, radiator caps and wind energy components.

An unwavering focus on delivering quality has won Sundram Fasteners Limited the trust of both OEM and aftermarket customers in highly competitive markets like India, China, Germany, USA, UK, Italy, France and Brazil.

Technically, the stock looks very strong after giving a clear breakout on Thursday, 12^th October, 2017. It is trying to sustain the breakout. Personally I might be buying this stock on every dip till 480 starting with a small quantity at CMP of course. It is also a pure “ Buy On Dips ” kind of stock. I feel that the stock may touch the targets of 560 & 600. I will be maintaining a strict & closing basis Stop Loss of 460. As per my BTS ( Breakout Trading System ) I feel that the stock should start moving up. Fundamentally, also the stock is performing very well as we can see from the basic facts & figures mentioned below :

The Revenue has grown to 841.74 crore from 831.19 crore. The Net Profit also, has gone up to 90.17 crore from 87.66 on QoQ basis. EPS also, has gone up slightly from 4.17 to 4.29. Operating Profit Margin grew to 17.82 % from 16.22 % & Net Profit Margin also went up slightly to 10.71 % from 10.55 % on QoQ basis.

The promoters are holding nearly 50 % of the total equities in the market. The company has a good and consistent profit growth of 23.08 % over 5 years. The company has been maintaining a healthy dividend payout of 26.55 %. So, overall personally I feel that the company is a good investment opportunity for a short period of time and I might go for buying, of course with the levels mentioned above for entry, exit & Stop Loss.

08/010/2017 - Index views

NIFTY : 10,003.40

As per the assumption, NIFTY went above 9880 & sustained the level & closed above 10,000. Now we are standing on the exact resistance level of 10,000. There is a possibility that we may stop here for a while and either consolidate or come down a little bit. In case of NIFTY coming down, it may again hit the level / zone of 9880 / 9860. In case of it goes above 10,000 & continues the uptrend, it may see 10,100 and might retest the recent swing top which is the all time high of 10,188.80. So for all of us tomorrow’s close is very important & the next probable short term trend will be decided on the basis of tomorrow’s close, i.e. Monday, 09/10/2017 close. Since we are trading on the resistance, one must be careful & trade with a proper Stop Loss. You may use the levels we have discussed above.

BankNifty : 24,228.10

There is no change in the levels yet & one may continue to use the previous levels as posted. The previous post was :

Comparatively, BankNifty is weaker than NIFTY. In my previous post, I have mentioned the levels of resistance & support. Amazingly, it almost touched the resistance mentioned in my post & came back. The levels of 24,270 / 24,300 as resistances & 24,000 as a support are still intact. One may look for these levels & keep it handy for any positional trades.