Anuj Singhal, Managing Editor, CNBC Voice
Yesterday closed at the lower level of the Nifty range i.e. 25,350. Tomorrow the summit of the Nifty was exactly 10 dema and today 25,290 i.e. 20 dema is expected to break. Today’s closing will be more important than today’s opening. But one thing has to be understood why the rally stopped? Our rally was the Hope rally that the results would be good. But the quarterly updates so far were not good. And now TCS has started the earnings on a bad note. Today another bad thing happened that global signs are also weak. Today, if there is recovery in the midst of all this, it will be very positive. But where the recovery will come from, it is a little difficult to say right now. If the Nifty closed below 25,250 today, the trend will be negative. If the Nifty closed above 25,450 today, then the bulls will be considered a major victory.
IT’s Pain: Ka Gain of Bears?
The main reason for being below the gift Nifty is IT adrs. The biggest signs of this morning are the results of TCS. The results of TCS are bad but are not going to get shock. Today it is possible to recover from below in IT stocks. One should not be very distracted by seeing the reaction of AdR. There will be opportunities in the decline in small IT stocks. The main reason for the weak results of TCS is BSNL contract. Yes, international is also a bit bad, but not disaster. TCS results are more disappointing Tata Alexi. The TCS has a minimum valuation comfort, it is not in Tata Alexi. TCS results but also a silver lining. TCS’s BFSI vertical has done well. IT shares like Emphasis, Coforge, Peristant may recover.
Market: Then what should be strategy today?
Today the high and low of the first hour are very important. The 150 point gap does not make a short after a gap down, but today it has to be seen whether there is trend day or not. If the first hour low is broken then it will be slightly negative. We are still in a range in the market. It will be more important to keep an eye on the market breath than the Nifty. For the last few days, profits have also come in midcap. Are HNI and retail too a little tired now? By the way, the Nifty has not fallen much in the consolidation of the last 10 days. The swing of 25,669 was high, today we will be at 25,200 after the gap dan. The decline of up to 300-500 after a 1000 point rally is not uncommon, but if it starts slipping below it, you have to be a little cautious. Today, the consequences of TCS are bad, maybe there may be good results tomorrow. Consider this market as life. Many times your mood is good in the morning and sometimes bad.
Strategy on Nifty
The first support in the Nifty is at 25,250-25,300 (20 Dema). Big support: 25,000-25,100 (Monthly Options Zone). If the Nifty decisively slipped below 25,250, then 25,050 is also possible. Recovery is also possible if the Nifty is 25,250 left. The first registration is on 25,325-25,375 (Neutral Zone). The big registration is 25,400-25,450 (10 Dema Zone).
Strategy on bank nifty
The bank Nifty has closed exactly 10 Dema. 20 DEMA i.e. 56,700 is the next important support. Slipping below it, there is 56,500 Make or Break level, but there is no trigger to go there in the bank Nifty. If 56,700 survived, you can shop with a stop loss of 56,500. The first registration at 57,000-57,200 and a large registration on 57,400-57,500.
(Disclaimer: The ideas given on Moneycontrol.com have their own personal views. The website or management is not responsible for this. Money control advice to users to seek the advice of the Setted Experts before making any investment decisions.