Hello & Good noon friends…!!!
Welcome back to the Index views
again.
Nifty cmp : 10,723.80
After we made an all time high of
11,185 on 29th January, 2018, we have touched the level of 9960 on 23rd
March, 2018. We fell for almost 2 months. The recovery began on the very same day;
we made the low of 9960. The time has come to think again cautiously for any
new investment and to think about the investment done in past as well.
Being “ Cautious ”, definitely does NOT mean that Market Will
Fall, but it surely suggest to be cautious on higher levels for any long
positions. Since we have completed more than 60 % of the retracement from the
bottom we have made recently, it is the time to be cautiously long. Since market
is in a momentum, the inertia may lead the index towards higher levels i.e
another 100 /150 points on the upper side but still the caution is warranted on
higher levels.
On every rise, one has to book
profits and keep lighter positions on the long side and that too with a strict
Stop Loss. As of now, “ Buy In Dip, stay light and Keep A Stop Loss ” is
a good strategy. Once the Nifty breaks the 10,640 on the closing basis, one may
look for selling opportunities in the index and may keep 10,750 as a strict
Stop Loss on closing basis.
Bank Nifty cmp : 25,445.20
As compared to Nifty, the Bank
Nifty is weaker in strength. Nifty has completed more than 60 % of the
retracement whereas the Bank Nifty has not reached even to 50 %. So looking at
the overall scenario, it is quite possible that the Bank Nifty may dragged down
Or pulled up with the Nifty momentum. As of now it seems that with the upper
momentum, even Bank Nifty can touch 25,650 and even more if the domestic market
conditions and global scenario permits.
25,000 is a very strong support
zone for short term in Bank Nifty. It is almost on the resistance zone and
hovering around it. May be, the steam is still left for a couple of hundred
points but after that one has to be cautious. In fact, one has to be cautious
right now and watch keenly the support zones we have discussed for both the
indices. If those are breached on closing basis, you must take care of your
longs with a proper Stop Loss, till then, ride the rally with a trailing Stop
Losses and hold your horses for any fresh long trades / investments till we get
a Break Out Or get a good, very good Dip to start investing / long positional
trades. Till then,
Stay Safe, Trade Safe.
