Anuj Singhal, Managing Editor, CNBC Awaaz
On Friday we had asked to hedge long. It was basic sense that Donald Trump would be enraged by not getting the peace prize. Big question: Is Donald Trump playing the market? Announced 100% tariff on China before the market closed on Friday. Said late last night that everything is fine with China. The interesting thing is that China’s rare earth decisions were announced on November 9 itself. But American markets reacted after Trump’s threat. It would have been better if Trump had not come clean. Gift Nifty was down 200 points on Friday night. If it had opened 200 points lower, there would have been an opportunity for big buying. Now Gift Nifty is down only 80-90 points. As long as it is above 25,000, the trend is positive.
Market: today’s signals
Nifty and Bank Nifty have crossed their upper end, now the path is open to 25,600 on Nifty and 57,500 on Bank Nifty. FIIs have bought in cash for the fourth consecutive day. Have bought for 4 consecutive days after July 10, have also covered some shorts for the fourth consecutive day, but still the short positions of FIIs are at 92.5%. 16,000 shorts covered in 4 days and now net shorts stand at 1.81 lakh. Today the texture of the market has to be tested.
Market: What should be the strategy?
The same thing is happening in the market which happened in the last 2 quarters. There is a hope rally in the market till the second week of the results season, but as the results season progresses, the market starts falling. But this time it is expected that the market should not fall. Because this time there is a GST cut factor. The market knows that this quarter is also going to be mostly soft, but the commentary of the companies is clearly saying that the third quarter will be a blockbuster. Therefore, this time there will be hope that big stocks will not fall even on bad results. The updates from the banks were excellent and hence the banks are leading. Buying is working in every dip in Bank Nifty. Bank Nifty can also set an all-time high in this swing. Nifty is also fine but IT gives problems from time to time. Finally IT is also taking part in the rally
Market breadth was also fine after 3 days of decline on Friday. Trade the combo of relative strength and good results.
strategy on nifty
The first support is at 25,150-25,200 while the major support is at 25,000-25,050. Buy only if Nifty opens 50-100 points lower. Good levels for buying and adding positions are at 25,150-25,200. For this put SL at 25,050. The first resistance is at 25,300-25,350 and the major resistance is at 25,450-25,500.
strategy on nifty bank
The first support is at 56,100-56,300 while the major support is at 55,800-56,000. The buying zone is at 56,400-56,500. The zone for adding positions is at 56,300-56,400. Strict SL for long deals was placed at 56,100. The first resistance is at 56,700-56,800 while the major resistance is at 57,000-57,100.
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