19 January 2017


"BUY NIFTY ABOVE 8410 TGT 8455/8475 SL 8375"
Equity benchmarks as well as broader markets closed range bound session higher for second consecutive session Thursday as investors preferred to stay on sidelines ahead of corporate earnings and Union Budget. Nifty traded dull for the Thursday and settled marginally higher, in absence of any major trigger. Again, it was stock specific move which helped traders to some extent. On the other hand, mostly sectoral indices traded in line with the sensex & nifty and ended on flat note. The benchmark indices on Thursday settled higher thanks to gains in index heavyweight stocks such as ITC, Tata Motors and Infosys even as Asian markets ended lower after Fed Chair Janet Yellen signalled at future rate hikes in US.
 We reiterate our buy on dips approach while keeping focus on stock selection till consolidation continues.  On the upside, the Nifty has significant resistances at 8465 and 8500 levels. A conclusive rally above the second resistance is needed to strengthen the bullish momentum and take the contract up to 8530 and 8555 in the same period. Therefore, traders with a short-term perspective should desist from trading in the index futures contract as long as it trades in the sideways band between 8400 and 8350.
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Supports: 8400 and 8350
Resistances: 8465 and 8500