Weekly market update!

Last week we clearly mentioned, "Nifty looks weak & sell on the rise should be the strategy." Nifty perfectly continued  downtrend around the gap low & taken support around 7590 as mentioned. On stock specific our targets were achieved for Ashokley & Bankindia. We booked profit in Indusindbk around 855 & in Axisbank around 465.

Now nifty still looks bearish but it is trading around very crucial levels. It made a weekly low very near to yearly low. In fact nifty has not gone below 7540 in last 15 months. So there is all possibility that nifty may rebound. Some kind of divergence is also developing on momentum indicators. So if nifty open lower a counter trend trade is possible keeping stop below 7540. However one has to keep in mind that nifty is in downtrend unless it closes above 7850. So all possibly 7500 to 7850 looks to be nifty range this week.

On stock specific, We recommend to sell LICHSGFIN around 463 for a target of 445 with a stop of 475. We recommend to sell DHFL around 212 for target of 204 with stop of 216. We recommend going long in HDFC for a target of 1220 with a stop of 1149.

Weekly market update!

Last week we posted that nifty has a strong resistance around 7980 & strong support around 7780. although nifty didn't break the resistance as per our expectations & moved down. But look at the high & low of the index. High is below 7980 & low is very near to 7780 the levels mentioned. On stock specific DIVISLAB & Bharatforg achived our targets. We exited LICHSGFIN & BHEL.

Now nifty chart is looking weak. There will be some upwards movement after last weeks decline, right now it looks to be on short covering. So sell on the rise should be the strategy unless nifty moves above 7920. On Friday, nifty opened gap down & the gap did not get filled. So gap will act as a resistance. Above that 7920 is a strong resistance. On downside 7700 i a strong support below that nifty can go down to 7590.
On stocks specific we recommend going short in Ashokley around 92 for target of 88 with stop of 93.5. We recommend going short in Bankindia around 125 for a target of 120 with a stop of 127. We recommend going long in Axis bank at current levels for a target of 473 with a stop of 456. We recommend going long in Indusindbk at current levels for a target of 965 with a stop of 933.