Nifty broke the previous low and it could be heading towards 5770-5800 where the 61.8% retracement of the whole rally from 5500 levels.As i said in the previous post about nifty i would not be selling nifty below the lows of 5850-70 and would be waiting for a buying opportunity.Among the bigger names start with JP where where close to 62 would be a decent buying opportunity for this high beta name and
wait for other stocks to consolidate. I would expect a stock like BHEL to find a double bottom close to 175 zone and it is worth trying to buy this stock close the the previous bottom as the retest is happening after a long time.It is better to search for those stocks which are finding a bottom when nifty is at 5800 levels. If we see the largecap banking space SBI is approaching the previous bottom of 1950 which can offer a decent bounce back, reliance is yet to reach 760-770 levels.Volatility index is showing the fear of traders by hitting new highs with the rise in dollar.I would say this is a positive factor for nifty as spike in the volatility index is a little too much for the market at this stage. We could see 5800 put building maximum number of positions and 5900 call was adding lot of positions in todays session too.Nifty is following a bullish technical pattern of ending diagonal which would not give a consolidation stage and would instead give a V shape recovery from the downside.Thus wait for nifty to stop falling and let the mentioned stocks reach the respective support zones with a discount in nifty futures and that would be the best time to go long.
wait for other stocks to consolidate. I would expect a stock like BHEL to find a double bottom close to 175 zone and it is worth trying to buy this stock close the the previous bottom as the retest is happening after a long time.It is better to search for those stocks which are finding a bottom when nifty is at 5800 levels. If we see the largecap banking space SBI is approaching the previous bottom of 1950 which can offer a decent bounce back, reliance is yet to reach 760-770 levels.Volatility index is showing the fear of traders by hitting new highs with the rise in dollar.I would say this is a positive factor for nifty as spike in the volatility index is a little too much for the market at this stage. We could see 5800 put building maximum number of positions and 5900 call was adding lot of positions in todays session too.Nifty is following a bullish technical pattern of ending diagonal which would not give a consolidation stage and would instead give a V shape recovery from the downside.Thus wait for nifty to stop falling and let the mentioned stocks reach the respective support zones with a discount in nifty futures and that would be the best time to go long.
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