We have seen good run up on the NSE Nifty and Sensex in the past 2 weeks, and now both the frontale indices are near to a short term resistance level from where we can expect some supply coming in for the very short term. A very crucial resistance for the Nifty exist at 5321, which will be a trend decider on closing basis. Nifty may take some time to show breakout and some consolidation may take place at current levels. Traders holding long can exit long positions and renter once again when we enter the fresh buying zone above 5321
High risk traders can take short position as the risk is very low with a stoploss of 5321 and above 5321 again long positions shall be taken with immediate targets of 5410-5500. Short term traders should also follow the same strategy of booking the longs as of now and re-entering above 5321, from where we will see a fresh uptrend and buying wave. On sustainable breakout above 5321 on weekly charts we will see a fresh buying emerging in the markets where mid-caps will see huge buying.
Stock to Go Long : Ranbaxy, TataSteel, Indusind Bank
Stocks to Go Short : BPCL, GAIL, FCS
Previous Outlook
14-March
The broader markets have been in the range in the entire last week expect the last 2 sessions, although it made and attempt to break the range and tested the resistances. The opening of Monday will be the decider for the markets, if we see the NSE Nifty is able to trade well above the levels of 5156 and 5189 ,we may see the uptrend continuing. Above 5189 the next supply zone comes at 5260-5321. International markets are alos supporting the uptrend. Whereas in the Commodities markets Gold and Silver has shown a breakdown in last week, and I expect them to correct a bit more in the next few days.
Traders holding long positions in Nifty and Stocks as per past few weeks’ recommendations can continue to hold long positions and trail the stoploss of 5097. Mid cap stocks will continue to rally with Pharma and Banking sector leading the markets
Stock to Go Long : DenaBank, RajeshExpo, Ranbaxy
Stocks to Go Short : TataMotors, JindalStel, HindOil
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