MARKETS CONSOLIDATE AFTER BIG UP MOVE; NIFTY MAY MOVE IN NARROW RANGE THIS WEEK, MAYBE BETWEEN 8100 AND 8250;
Markets Consolidate After Big Up Move; Nifty May Move In Narrow Range This Week, Maybe Between 8100 And 8250; Buy On Dips; Short Term Uptrend Intact While Nifty Stays Above 8100; It Stocks May Continue To Outperform, Cement Bottoming Out.
NIFTY: After a four consecutive session, nifty finally decided to take a pause and rest. The Nifty closed at 8179.50, down 6.30 points (‐0.08%). Nifty opened with flat note but as the day progressed nifty were witness of some profit booking and touch 8134 as a day low. As prevailing short term is up nifty trimmed all the losses and closed with flat note. On the sectoral front Cement, Realty, capital goods and auto stock were the major gainers while banking stock were under pressure. The short term trend is favoring the bulls, while the Intermediate trend is down. So any clear view will comes only above 8270 till then we do not have clear view as both trends are contradicting. For this reason, we advise swing traders to avoid taking new positions in the nifty and concentrate only stock specific trade.
BANK NIFTY: Bank Nifty has seen a decline after four days of higher closing. Prices started the session with a gap up of nearly 100 points but found resistance at 18250 and closed below 18000. An upside correction which took prices near its resistance area (18200‐ 18250) have seen a pause. Now we may see either a trading range or a decline in the short term. Hence our view is sideways in the Bank Nifty. Earlier index found support near 17600 and a rally after that and now a decline from resistance. Therefore, as far as prices are trading inside 17600‐ 18200 (inside support and resistance area), swing traders should avoid taking new positions. Traders should wait for a clean breakout before entering new positions otherwise we could be in a losing side of a trade. All we can do is to follow our rules and protect our capital for chart pattern trades. We do not have a clear view in the Bank Nifty so intraday traders should also look to avoid the index and watch the market action from outside.
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