Nifty held 5850 and gave a quick bounce to 5900+ levels and some major large cap names also showed an upmove due to short covering. In the coming weeks nifty is yet to prove whether it can still hold 5850 levels or some more downside is left. If we look at the chart structure of major stocks there are no signs of major correction but clearly a sense of range bound market is evident. Some promising names from the stocks front would be SBI and HCL tech and the banking biggie is close to giving a break out. 2350-60 remains a stiff resistance zone for SBI and it could fly-200-250 points on the upside with a fresh break out. HCL tech is another stock which is holding the support zone for quite a few days and unlike SBI the stock is not a break out trade and i would be a buyer above the previous high.Another interesting stock is TATA steel which is also ready for a break out after a long consolidation.Above 400-405 it can give 10% return within a short span of time. Volatility data is showing some buying happening at lower levels and traders are very much optimistic in December series. Dec 20-21 would be crucial trend deciding days and it could give a major move on these days and till then the index can be range bound , thus it would be wise for an index trader to be active on these days. 6000 levels would still remain as a psychological level to cross and options writers would try their best to hold these levels.
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