"BUY NIFTY ABOVE 8650 TGT 8685/8730 SL 8620"
Nifty
consolidated after making a fresh one year high on the back of negative cues
coming in from international markets. However, the 40 point premium on Nifty
futures could indicate the first signs of exuberance creeping into the markets.
The Sensex on Monday wiped off all its gains to settle the day 48 points
lower, while the broader Nifty ended below its key 8650-mark. The headline
indices edged lower amid uncertainties over the passage of the Goods and
Services Tax (GST) Bill, which entered the last mile as the government
circulated the new draft on GST to Rajya Sabha members.
Finally,
the Sensex ended with a loss of 49 points at 28003. The Sensex opened at 28083 touched
an intra-day high of 28285 and low of 27874. The Nifty started the week on a
positive note at 8654 and extended its bullish momentum to register an intraday
high at 8711 levels. However, experiencing selling pressure, the contract began
to decline and breached the key level at 8591 and recorded an intraday low &
closed at 8636 level.
Markets are in a longer term bull trend,
they made yet another intraday high for the year. We continue to hold an upbeat
outlook and would stay long for a medium term target of 8800. Traders
with a short-term view can initiate fresh short positions on a fall below 8580
levels with a stop-loss at 8650 levels. The contract can decline to 8550 and
then to 8530 levels. Next key support is at 8500. On the hand, a strong rally
beyond 8725 is needed to reinforce the bullish momentum once again and take the
contract higher to 8750. Subsequent resistances are at 8780 and 8800 levels.
Supports: 8580 and 8500
Resistances: 8720 and 8800
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