Overview
As predicted in previous post Nifty and Bank Nifty both traded in range. Both were bearish but Bank Nifty was more bearish than Nifty which I already predicted in the last post.
I will not be writing Nifty report series for few days because of Holidays coming in and it is time for Family. I made a profitable trade today and like to enjoy the money going into Holiday.
Nifty Outlook
Nifty is trying hard to keep that 11,300 level intact as mentioned on last post. The Auto sales number was not encouraging but increased foot falls at the end of month is positive. This is reflected in Auto stocks pricing as well.
But Nifty has its own share of Negative news related to banking sector. So Nifty will remain in ranges with little negative bias in coming days. The global events are important.
Bank Nifty Outlook
Bank Nifty is bearish due to flood of bad news in recent times. It maintained the range of 29,500 and 28,500 but today it closed below 28,500 which is negative development for the Index.
It will see more pain in coming days with limited upside and good downside. The only positive will be results which starts late in the month. So I am bearish on Bank Nifty as of now.
Some interesting Stocks
Yes Bank
The banking stock is moving based on news and developments. So it is better not to trade in it based on Technical Analysis. You should only trade if you are seasoned trader cutting losses if direction is opposite and booking profits before tide turns.
The price is tempting but I would not recommend investing at these levels.
India Bull Housing
This is very interesting stock. It has almost touched the circuit on higher side as well as lower side. The stock is moving along with Index in both directions. So you need to act accordingly while making a position in this one. Due to increased volatility the Options Trading may be advised only if you have experience in Options.
Zee Entertainment
Zee Entertainment is also one of the volatile stocks. It is also part of Nifty. The stock is giving swift movements and is driven by news. The stock is at interesting levels and will give swift movements in direction of Nifty.
Conclusion
Nifty and Bank Nifty both are trading with negative bias with Bank Nifty being more negative than Nifty. However at lower levels Bank Nifty and Nifty both are showing resistance.
With no events lined up Global developments are playing crucial role for the time being. Earnings are round the corner and will be decisive for Nifty and Bank Nifty direction determination.
I am planning to have Results based trade in coming days as it will be more predictable than Index movement.