morning-outlook

NIFTY:  The markets did pretty well nothing after the Feb bomb. But, the underlying theme was: higher levels were not sustained, rallies were met by selling. December is a seasonally bullish month, therefore, if a correction is starting (it seems so), then this month may not see big declines as the seasonal effect of bullishness battle with the downside pressure. For short term traders, there is a swing trade on the short side, which is given in detail in the SHORT TERM Section. IT stocks are a buying opportunity. Apart from this letter, you can use your own judgement and buy IT stocks whenever you can. THE LONG TERM VIEW Our long term view is very clear. We are in a long term bull market. The day to day moves are going to be up and down, but the chances are our markets will be much higher, five years from now.

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BANK NIFTY: Bank Nifty had a volatile day as expected due to the outcome from FED Meet. In the overnight meeting, FED raises interest rates by 25bps caused a lot of volatility in the Indian markets. Prices started with a big gap down below 18150 and made a low just there. Index gone through a sharp recovery and within one and a half hour prices made an intraday high of 18532. Index slid lower slightly but eventually ended above 18400 with minor gains. On the daily charts, prices are still trading inside a range (18200‐18700) from three weeks. We are suggesting our readers from past few days that a directional move may come if prices successfully break this level on either side. Hence traders should look for a buying above 18700 or selling below 18200. Take only one trade whichever executes first. Stop loss in both the cases would be placed at 18450. Avoid trading inside range bound market.

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