Market Strategy: Talking about further market movements and outlook Anuj Singhal, Managing Editor of CNBC-Awaaz Says that these are bad times even for the best investors. This market is like a swamp, the more you push, the more you will get trapped. Money is being made by shorting positions, but the market is also giving big rallies in between. Last Thursday itself there was a rally of about 500 points in Nifty. Do index trading only if the doctor said you have to do it. Daily moving averages are being made a joke in this market. The market has turned 200 DMA into a wash dog. It is difficult to say how long this phase will last. But one thing is clear, whoever survives this phase will make big money. Next time there is a trending market, you should have capital. If you don’t save money, what will you do in the next rally?
After all, why are FIIs selling?
Anuj Singhal said that this morning I heard that US bond yield may go up to 5.5%. This means getting 5.5% return in dollar terms without doing anything. Now add 3-4% rupee depreciation to this. The Indian market gave a return of 9% last year in Rupee terms and tax on this has also started now which was not there earlier. Why speak ill of FIIs, they will come when money is made. Would you put your money abroad for 6% returns?
You will invest money outside the country only when the returns are at least double? These FIIs will return but only when they see the picture clearly. The money of the domestic investor is still coming in at the same speed, but what will happen if the domestic investor starts getting negative returns? The market has never given negative returns in the last 9 years.
Nifty: Will we break the November low?
Anuj Singhal said that the market texture is indicating that the November low will be broken. Both Nifty and Nifty Bank are below 200 DMA. Nifty Bank has already broken the November low. Even in Nifty, the November low is 400 points away, but the question is, what will happen if the November low is broken? If nothing major happens in the budget then the market may fall significantly. If there is a big relief package in the budget, there will be a sharp rise in the market, but in this market right now money is being made by selling in the rally. Wherever the rally fails, huge money is being made by selling it. Yesterday also the market gave the biggest trade when the first rally failed.
strategy on nifty
Anuj Singhal said that the first support is at 23,600-23,650 (yesterday’s low) while the major support is at 23,450-23,550 (option zone). The first resistance is at 23,750-23,800 (yesterday’s high). Major resistance lies at 23,850-23,950 (Option Zone, 200 DMA). The selling zone is at 23,750-23,800. The short addition zone is at 23,800-23,850. SL for short deals was placed at Rs 23,950. Buy only if yesterday’s low remains, keep SL of yesterday’s low.
strategy on bank nifty
Anuj Singhal said that the first support is at 49,900-50,000 (yesterday’s low). Major support is at 49,500-49,600 (option zone). First resistance is at 50,400-50,500 (yesterday’s high). Major resistance lies at 50,700-50,800 (200 DMA). Sell every rally till 50,700-50,800, and place stoploss at 50,900. Buy only if yesterday’s low remains, keep SL of yesterday’s low.
Nifty Strategy for Today: These levels are important for Nifty-Bank Nifty, do not lose sight of them.
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