Nifty tried to break out of the tight range but it is failing to do that on every attempt. I had been emphasizing on 17-18 levels in the volatility index where nifty would probably make a top and take a dip for the secondary rally. Thus 5350 -60 is the level where we could see the resistance of a bearish island from where nifty started heading down in the previous months. If we have a look into the turnover data we could see the market participants are very active supporting the strong positive momentum. In a nutshell nifty could see some profit booking sessions to 5200 levels from where it could attract more buyers for a higher target of 5400+ levels. The volatility data is suggesting lot of buying is happening on every dip towards 5270 zone but the put options premiums are getting cheaper where that could also add some buying interest. Thus if a trader is long in the market the stop would be around 5260-5270 levels and it is not worth adding a fresh long position at 5330+ levels. A fair level to add long positions would be around 5180-5200 from where we could see a 'run away' gap (it represents a gap in the movement of the price where it would happen with huge volume. If the market is in a strong bull market we could see the higher end of the gap acting as a decent support zone). This would be one of the methods we could follow and see whether the market is following the positive momentum.
Stocks to watch
BF utilities and Ahmednagar forgings
BF utitlities is on the verge of a six months break out with good volume and open interest. The stock seems to give 8-10 % on the upside and as a trader i would start adding the stock above the previous day's high and would like to accumulate on dips till 420 as a short term investment.
Ahmed nagar forgings is forming a rounding pattern and the pattern is getting formed over the past few months and is expected to give a sharp up move with 10-15% upside within a week or two. Thus it is worth taking a looking into these stocks if one is really looking for a short term investment .
BF utitlities is on the verge of a six months break out with good volume and open interest. The stock seems to give 8-10 % on the upside and as a trader i would start adding the stock above the previous day's high and would like to accumulate on dips till 420 as a short term investment.
Ahmed nagar forgings is forming a rounding pattern and the pattern is getting formed over the past few months and is expected to give a sharp up move with 10-15% upside within a week or two. Thus it is worth taking a looking into these stocks if one is really looking for a short term investment .
