As stated in the previous post 20th September is the day for bottom formation.Nifty futures formed a bottom at 5030 levels and gave a sharp up move. Now we are waiting for a top around 5200 - 5250 range and every dip was a buying opportunity till now.(Stated in yesterdays post)there are multiple resistance points at 5200-5220 levels. It is better to book some profits in Nifty around 5200 and go long only above 5220 levels (closing basis). No need to book profits in banking stocks as banking gives you the first indication of a bull market structure. Banking stocks like SBI, ICICI had a smart run by forming double bottoms and looks good on the charts.Investors should accumulate some mid cap banking stocks like Canara bank , Union bank of India in smaller quantities as they look cheaper at current levels.
I would stick to expiry at 5200 till Nifty gives a closing above 5220-30 levels.Next important dates to watch out for are 27 and 28 th of September.
Disclaimer:The opinions made herein are for informational purpose and are not recommendations to any person to buy or sell any securities. The opinions are based on the theory of technical analysis. The author does not accept any liability for the use of this column. Readers of this column those who buy or sell securities based on the information in this column are solely responsible for their actions.
