Nifty Inside Trading Range With Bullish Bias, Mid Cap Stocks Outperform
Nifty Inside Trading Range With Bullish Bias; Mid Cap Stocks Outperform; Stay On Buy Side Of Market; Sharp Dips May Be Buy On Dip Opportunities; Keep Proper Stop For Long Positions in Nifty, Bank Nifty.
NIFTY: One more Narrow range day for the Nifty as the Market continues to move inside a narrow trading range. With the Index closing at 8288.6, very close to the breakout point of 8300, it seems likely that markets will move higher sooner rather than later. We remain long in Nifty as well as Bank Nifty futures. These trades are now protected with stops which are very close to our entry prices. The Nifty has already moved above 8230-8250, giving an indication that a possible double bottom may be valid. We are also in the pre-budget environment when the markets remain usually optimistic. Mid caps continue to outperform, therefore, we should be looking to buy good quality mid caps on dips, and, possible breakouts. Have Fun!
BANK NIFTY: BANK NIFTY closes higher with a gain of almost 160 points. The index has been making a pattern of NR 7 in last three trading days. Today’s range was higher than last three days but still very narrow. These narrow range days suggests a big move is very near in the index. On the daily charts, prices were inside a trading range (17800-18300). This range has seen a breakout today and closes higher. This breakout suggests an upside rally is possible here. Traders should be long in the index from 18250 as we had suggested a long trade above 18250 in the anticipation of a trading range breakout. Traders should protect your trade with a tight stop loss of 18250 because we do not want to lose much capital in an uncertain environment. Place a target for this trade at 18650.
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