Talking about further market movements Anuj Singhal, Managing Editor of CNBC-Awaaz Said that it is very difficult for any rally to survive in this market. The only hope is that FIIs finally go on Christmas break. Why would FIIs who are selling at 23,600 not sell at 23,800? Any gapdown in an uptrend is an opportunity to buy blindly. Any gapup in a downtrend is an opportunity to sell blindly.
Anuj Singhal said that there is a strong possibility that there will be selling at some point in the gapup. The big question is whether there will be a second rally during the day? Unless Nifty closes above 20 DEMA, every rally will come under doubt. The current 20 DEMA of Nifty is at 24,280-24,300 zone.
Market: What’s going on?
Anuj Singhal said that this is a short week but it is also the last expiry of the year. Christmas holiday is on Wednesday in the middle of the week. Monthly expiry is on Thursday. Last week, the volumes of FIIs have increased instead of decreasing. FIIs are selling at every level in this market. The biggest factor for selling of FIIs is currency. Rupee has also fallen below the level of 85. Anuj Singhal further said that FIIs are getting good opportunities for growth in their own market. FIIs are also getting support from stable currency and yield in their market. No FIIs will take risk in emerging markets unless returns are more than 20-30%. We have digested the selling of FIIs earlier also. The difference this time is that the sentiment has deteriorated considerably.
Then what should be your trading strategy?
Anuj Singhal further said that until 20 DEMA is achieved, sell on every rally failure. At present the texture of the market is “Sell on rally”, but there is also a way to sell. Gaps can also turn against you in the trading market. Therefore do not take positions in this market. The market is giving you a new opportunity to short every day. There is no need to take the risk of overnight or weekend. Be ready to sell if there is a gapup of 150-200 points this morning. As soon as the rally fails, sell and put SL of 50 points from the day’s high. Nifty is best for shorting or choose weak largecap stocks.
Where are the investment opportunities in this market?
Anuj Singhal said that relative strength: Focus on stocks with 52-week highs. Sector Watch: Buy strong IT, Pharma stocks on every dip. 3- Strong stocks are falling due to one-time weak results.
strategy on nifty
Anuj Singhal further said that the first resistance of Nifty is at 23,834 (200 DMA) while the major resistance is at 23,914 (starting point of the series). Sell in rally till 23,750-23,900 with stop loss at 23,950. The first support is at 23,537 (Friday’s low). Major support lies at 23,350 (recent closing low). If seen on the screen, buy in the second half.
strategy on nifty bank
The first registration of Bank Nifty is at 51,000-51,200 while the major registration is at 51,500-51,600. Sell if the rally fails and set a stoploss of 100 points. The first support is at 50,500 (200 DMA) while the major support is at 50,000 (Psychological).
(Disclaimer: The views expressed on Moneycontrol.com are the personal views of the experts. The website or its management is not responsible for the same. Money Control advises users to seek the advice of certified experts before taking any investment decision.