Anuj Singhal, Managing Editor of CNBC-Awaaz Says the market is now at a very interesting juncture. Yesterday’s FII data was quite interesting. Yesterday FIIs added both longs and shorts. He sold Rs 1000 crore in Nifty and bought Rs 650 crore in Nifty Bank. This means yesterday Nifty was shorted and Nifty Bank was bought. Both Nifty and Nifty Bank are in very important zones. Nifty closed very close to 10 DEMA yesterday.
Yesterday’s high and last week’s high of Nifty is one which is situated at 23,391. If 23,400 is crossed then 20 DEMA i.e. space up to 23,600 will open. Bank Nifty also closed at 10 DEMA yesterday. Now the big resistance from here is 20 DEMA of 50,000. In any major trend, the counter trend is tested at 20 DEMA. If Nifty and Nifty Bank slip before 20 DEMA then there will be a big negative. But if it stops at 20 DEMA then short covering may also increase. For now, this rally will not be considered a new uptrend.
Trump’s coronation
At one time last night, Gift Nifty was up 240 points. Trump’s first statement caused a big fall in the dollar. Stock futures ran up for once before the dollar fell. But due to the subsequent statement, Gift Nifty also came down. If you have taken a position tomorrow then only your BP will increase. Gift Nifty was earlier up 200 points and is now flat. This is going to be normal for the next few months. There will be gapups and gapdowns. Keep one thing in mind, in the long run the market will move according to the results. Whether politics is domestic or global, its impact diminishes after a while. The problem with Indian markets is not dollar or FII selling. The problem with Indian markets is slowdown or poor results. If the results are strong then FIIs will come back with a thud.
Market: Which stocks to keep an eye on?
HDFC Bank: This stock is trading at 200 DMA for the last 5 days. It is important for HDFC Bank to maintain the zone of 1600-1650.
reliance: Reliance alone has saved Nifty from slipping below 23,050. Reliance shares have increased by 7 percent this month.
Infosys: This stock has slipped 10 percent from the peak. There are signs of touching its 200 DMA i.e. 1750.
L&T: The stock is trying to regain 200 DMA but is extremely weak on the charts.
Trent: This is the weakest stock of Nifty. Closed below 200 DMA.
Zomato: The results of the third quarter have been very weak. But the confidence of the brokerage remains intact.
Bajaj Finance: One of the strongest stocks, there are signs of touching its 52-week high.
Trading Plan: Will Nifty gain till 23600, Bank Nifty reach 50000 points?
strategy on nifty
Talking about the strategy on Nifty, Anuj said that the first resistance for this is at 23,391-23,482 (recent high, option zone) and the biggest resistance is at 23,550-23,600 (20 DEMA). At the same time, the first support is at 23,150-23,200 (option zone) and the most important support is at 23,000-23,050 (lower level of the series). Be prepared to take trades either way. Trade at the ends of the range until the trend is clear. Sell near 23,400 and buy near 23,200, keep SL- 50 points.
strategy on bank nifty
The level of Bank Nifty is mentioned only for information. There is still no trade in Bank Nifty for retail. Banks will continue to bowl nifty googlies. Bank Nifty Retail is being trapped on both sides. For this, resistance is at 49,900-50,000 (20 DEMA) and support is at 48,700-48,800 (yesterday’s low). No retail trader can place a logical stop in Bank Nifty. In just one lot, logical SL means a loss of Rs 10,000.
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