The week past and expected
On Friday the market has broken important resistance at 4950(16550) and reached to 50% retracement level (4995/
16700) of the entire fall between 5310 and 4675 level. We may call it as a healthy bounce back to the bear rally and
seems to continue 5060/70 (16950) if it breaks 5000/16700 in the near term.
Week on week basis the market closed into positive territory for the third consecutive week with nominal gains. Absolute
winners were Banks, Auto, Metals and IT. The losers were mainly Reality and FMCG. The activity was sideways in
Pharmaceuticals and Capital goods (except Larsen). Our preferred picks, ICICI BANK, TATA MOTORS, HINDALCO and TISCO.
We will try to buy reality and FMCG only if they stabilize at any proper level.
For the day, the level of 4920 may act as a major support for the market and sustenance of the market above the same
will again try to lift the market to 5000 levels or more may be up to 5070 in the near term. In case the market fails to
sustain above 4920/16440 levels then it may react to its weekly support levels 4870/16270.
As per over all formation it seems difficult to break 4870/16270 in the near term however; dismissal of the same on closing
basis may push the indices to 4800/16075 levels. Our advice is to search for positional buying opportunity around the same
with a final stop loss below 4830.
Nifty Strategy: Buy Nifty above 4920 with a tight stop loss below 4885. The target should be again 4975 and 4995. Any
likely close above 5000 levels will be one more buying opportunity for the target 5065/70 in the higher side with a minimal
stop loss of 25 points at 4975. On the contrary, in case the market remains below 4920 level in the second half of the
trading session then one can create short
