Next week is going to be very crucial for market. Be very safe.
IIP data, Inflation numbers and finally rate cut by RBI on March 19. These events will decide market's future direction.
It will be advisable for low risk takers to do nothing.
But still there few low risk trades for the week.
NIFTY:
Sell 6200 NIFTY Calls for April expiry in the range of 28-32.
Even after 50 basis point rate cut NIFTY will find strong resistance to cross 6200, near a life time high. In call selling one should able to find out where NIFTY or stock price will not reach. In my view 6200 in next 7 weeks would be difficult considering the fact NIFTY covered more than 250 points in last five trading sessions.
LT:
LT is in bullish trend in last five trading sessions. This is based on assumptions of rate cut. RBI Governor's negative comments about GDP growth and inflation after market closer on Friday would curb the rally (if it is based on exception of rate cut) on Monday/Tuesday. However, it (NIFTY and LT) may move upward direction prior to announcement on March 18. This assumption is based on general trend before last five RBI policies.
As per EW also there could possibility of end of wave v near 5950/5960 and a sharp fall. Of course this will happen if it is wave v. Or rally may continue (if there is no sharp fall) if it is wave iii.
But still there is an outside chance of reversal during next two trading days.
LT was in down trend before last five sessions, it is still below ichimoku cloud, near it's resistance level around 1500.
Sell 1550 LT Call for March expiry @ 27-32.
PFC:
I am still holding PFC. The stock did not participate in market rally on Friday, perhaps it has started reversal again towards 180 range and shall give at least one opportunity of profit booking during next two trading sessions.
No need to average but those who have not bought 190 PFC put earlier can buy now with much lower risk.
IIP data, Inflation numbers and finally rate cut by RBI on March 19. These events will decide market's future direction.
It will be advisable for low risk takers to do nothing.
But still there few low risk trades for the week.
NIFTY:
Sell 6200 NIFTY Calls for April expiry in the range of 28-32.
Even after 50 basis point rate cut NIFTY will find strong resistance to cross 6200, near a life time high. In call selling one should able to find out where NIFTY or stock price will not reach. In my view 6200 in next 7 weeks would be difficult considering the fact NIFTY covered more than 250 points in last five trading sessions.
LT:
LT is in bullish trend in last five trading sessions. This is based on assumptions of rate cut. RBI Governor's negative comments about GDP growth and inflation after market closer on Friday would curb the rally (if it is based on exception of rate cut) on Monday/Tuesday. However, it (NIFTY and LT) may move upward direction prior to announcement on March 18. This assumption is based on general trend before last five RBI policies.
As per EW also there could possibility of end of wave v near 5950/5960 and a sharp fall. Of course this will happen if it is wave v. Or rally may continue (if there is no sharp fall) if it is wave iii.
But still there is an outside chance of reversal during next two trading days.
LT was in down trend before last five sessions, it is still below ichimoku cloud, near it's resistance level around 1500.
Sell 1550 LT Call for March expiry @ 27-32.
PFC:
I am still holding PFC. The stock did not participate in market rally on Friday, perhaps it has started reversal again towards 180 range and shall give at least one opportunity of profit booking during next two trading sessions.
No need to average but those who have not bought 190 PFC put earlier can buy now with much lower risk.
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