Trading Strategy: There has been a wonderful recovery in the market from lower levels. Nifty has improved by about 175 points from the bottom. The Midcap-Small index has also improved by more than 2 percent from the bottom. Bank Nifty has also saved 20 DEMA. Good buying has been seen in realty, PSU bank, defense shares today. There has also been a good recovery in consumer durables. However, IT, auto and capital market shares are under pressure. BSE stock is included in the top losers of futures.
Great recovery in the market
In such a situation, while talking about the future strategy of the market, CNBC-Awaaz Managing Editor Anuj Singhal said that there has been a wonderful recovery in the market from the lower levels. The midcap index has improved 2 percent from the bottom. Nifty has also jumped 0.6 percent from the bottom. Nifty Bank has successfully rescued 20 DEMAs. Big improvement has been seen in advance/decline. The big question is how much to trust this recovery?
Now today’s low will be Lakshman Rekha. It is still very important for the recovery to survive in the closing. If Nifty closes above 25,950, confidence will return. The recovery of midcap and smallcap is excellent. Looks like the one-sided selloff in midcaps is over now
Strategy on Nifty-Bank Nifty
Support for Nifty is at 25,750-25,800 and resistance is at 25950-26000. Whereas for Nifty Bank, support is at 58,700-58,800 and resistance is at 59,500-59,600.
Indigo: What to do now?
Anuj Singhal said that Indigo is a case study of how the structural story of a company can change. That’s why we took our view negative last week. We turned negative on Indigo after the rally from Rs 1800 to Rs 5800 and remained negative throughout the fall from Rs 5800 to Rs 4900. Now this stock has fallen 21 percent from its high. The biggest problem for IndiGo will be valuation de-rating in the coming time and if EPS is also affected then further correction may also come. But remember one thing, it is still a profit making machine. Somewhere big investors will definitely come to buy on correction. But retail should stay away from this stock for now.
Disclaimer: The views expressed on Moneycontrol.com are the personal views of the experts. The website or management is not responsible for this. Money Control advises users to seek the advice of a certified expert before taking any investment decision.