Incisive Nifty Trend Analysis

[prada]

En route to test the various support levels mentioned below. 5147 should provide brief support for the market. 'Capitulation' seems to be word of the season!

Although, plenty of supports exist all along the way until 5000 , meaningful ones would be - 5305- 5223- 5147 - 5030 - 4770. Ideally , I expect Nifty to cut through various support levels in a brutal fashion with bouts of shallow short covering from here on. This is precisely what I meant by ' a phase of capitulation ' if you had referred to my earlier post.

 

[prada]

Mayhem......

 

[prada]

Traders who have missed out on shorting Nifty, can do so at CMP with strict SL at 5320. Target of 5030 is very much still on.

 

[prada]

Modify the stop loss to 5380 on closing basis.

Traders who have missed out on shorting Nifty, can do so at CMP with strict SL at 5320. Target of 5030 is very much still on.

 

[prada]

Allow today's move to play out without panicking. Sharp reversal is on the anvil in the next few trading sessions. Nifty target- 4770. One can look at accumulating out of the money far month puts.

 

[SexyTrader]

Allow today's move to play out without panicking. Sharp reversal is on the anvil in the next few trading sessions. Nifty target- 4770. One can look at accumulating out of the money far month puts.

And is 7543 a target for BankNifty in this downtrend ?

If Nifty moves to 4770, the BankNifty should also head down faster.

 

[prada]

Yes, an absolute possibility...

And is 7543 a target for BankNifty in this downtrend ?

If Nifty moves to 4770, the BankNifty should also head down faster.

 

[SexyTrader]

Yes, an absolute possibility...

I expect BankNifty to hit 7543 in September.

So we can expect fresh buying happening when it touches 7543 ? Or can it go down further below 7543 ?

 

[jamit_05]

I expect BankNifty to hit 7543 in September.

So we can expect fresh buying happening when it touches 7543 ? Or can it go down further below 7543 ?

Even if it touches 7543, the major banks, HDFC, SBI, Axis would have historically low PEs.

 

[timepass]

Allow today's move to play out without panicking. Sharp reversal is on the anvil in the next few trading sessions. Nifty target- 4770. One can look at accumulating out of the money far month puts.

Prada, your updates on USDINR please.. The RBI has announced some major policy decision regarding USD buying by the Oil Marketing companies. This is expected to suck out $13bn liquidity (about 33%) from the forex trading scrips because the OMCs will buy it directly from the RBI