We have seen a huge downside o the indices in the past fortnight, the NSE Nifty has corrected almost 400 points from the recent highs. Nifty has a very crucial support at 4750 and a resistance is at 5018. Unless the NSE Nifty is in this range we advice traders not to take any position in this range. Once we see a breakdown or a breakout on the either sides a fresh position in Nifty can be taken.
Overall the Nifty is going to remain volatile with upward trend in this week, investors and short term traders can buy selective mid-caps and large cap stocks which are close to the 100 days moving averages.
Stocks to Go Long: TataMotors, GNFC, Renuka
Stocks to Go Short: IFCI, KotakBank, LITL
Previous Outlook
18-January
The NSE Nifty has seen some decline in first two days of the week but we saw a smart bounce-back from the 5150 levels, which is a very crucial support for the Nifty in the near term. The short term trend is still upward and one can use 5150 as stoploss for the positions initiated at lower levels, whereas on the higher side 5310 still remains a crucial resistance on the closing basis, a close above it may take the index to new recent highs of 5380-5447 levels.
Swing traders are advised to hold long positions in nifty and stock with stoploss of 5150, also may choose to book profit and current levels and enter the long positions once again above 5310. Once Nifty moves above 5310 zone, day traders can use Intraday dips on the Nifty to buy and use 5310 or day low as stoploss. Delivery based short term investor should continue to hold the existing positions and should look for dips to buy mid-caps.
Stocks to Go Long: RNRL, Suzlon, Union Bank
Stocks to Go Short: TataSteel, JindalStel, M&M
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