Nifty had a range bound session and as said in the previous posts it is expected to trade higher till 5530-50 levels with a reversal close to 5320-30 zone. Though i wont be a buyer in the break out trade in nifty PSU banks are expected to out perform the index in the coming days. The bank nifty is still lagging nifty and that would not be a good indication for nifty but most of the banks are making decent base ahead of the monetary policy and i expect it to have a positive effect on bank nifty. With the positive news flow S&P has done with the upside target of 1450 and i would be cautious on any up move beyond this. Volatility data suggests some short build up at higher levels close to 5450 and any positive news flow would force the short sellers to cover their positions. Turnover data is showing the injection of liquidity continues and as long as the fund flow is there go with the flow. SBI is consolidating at 1850-1900 levels for quite a few days and it is building the base around those levels for a 90-100 points move. 1900-1910 seems to be an immediate resistance zone and a move beyond this could take the stock to 2000 levels. If you are reader of this blog for quite sometime you could see the bullish stand taken is quite justified for quite a few days and lighten the longs when we are close to the target and that is way one could prove how smart he/she is as a trader. The trading range can be 5430 - 5530.
Hi Vinu,
ReplyDeleteHow are you? Am follower of your blog on daily basis. :)
SGX Nifty has already gone past 5500. So, 5600 and above in in the cards, before monetary policy?
Have a good time...Bye..
Vijay kumar
The liquidity flow can take Nifty to the previous high zone of 5600-5630, but even if you get a 200 points upmove from here the return would be close to 4%. PSU banks like SBI, Bank of India and the private sector bank YES bank would offer us a cumulative return of 15-20 % so personally from the risk/reward and money management perspective i would like to go long in the banks and would not touch nifty at this juncture.
ReplyDeleteHi Vinu,
ReplyDeleteThanks....Went long in Axis Bank at 950. Hoping it touches 1050 by September Expiry ?!?!?
Btw, congrats on the new venture. I definitely would like to know more abt. the Advanced Derivatives Program. Is it an online program?
Thanks...
Vijay kumar
Hi Vinu,
ReplyDeleteBtw, YES bank up 5%....you have given another great call...
Bye..
Vijay kumar
Hi Vijay,
ReplyDeleteGood to know that your trades are going good.Actually the institute is promoted by some of my friends who have worked as technical and derivatives strategists in reputed brokerage firms (and much experienced than me)and i go there to take some classes. Do let me know if any body wants to join.