Hello Everyone!
Hope you all managed the week very well. It was a bumpy ride for me but I still, somehow managed to stay in the green. Had to recover some losses from that quick fall. World markets also not showing any signs of recovery and the event fully truncated the week ahead for us.
LIC IPO is also there so expect some liquidity crunch with the FOMC meeting even with RBI taking some stance on interest rate hikes again.
In today’s newsletter, we will review -
NIFTY
BANKNIFTY
NIFTY IT
NIFTY METAL
Let’s start :
NIFTY
After Thursday’s recovery till 17300 NIFTY failed to hold it above those levels. The fall was cruel and was initiated by BANKNIFTY and RELIANCE. 17200 had decent put writers but that devastating fall forced them to unwind and bought NIFTY till 17060. As of now, the scenario looks very flat as we have entered a no trading zone again. If we break 16900 only then we should look too short and if there’s a gap up even then I will look to short. Long-only above 17260 spot.
Had you been following me on Twitter have right after initiated the commentary to not carry forward any longs. Even in today’s upmove BANKNIFTY and NIFTY were behaving weirdly. HDFC BANK’s future was trading at a discount while the spot was showing an up move.
Don’t force any trades also have a strict stop loss.
BANKNIFTY
In BANKNIFTY 36500 is again taken over by call writers. The fall was so brutal that most of the put writers were forced so badly to move lower and lower. Like NIFTY, BANKNIFTY is also in no trading zone. Short only below 35800 spot long only when crosses 36500 spot. Should be a sell-on-rise candidate.
NIFTY IT
Weakest of all NIFTY IT! All big results were got sold into. INFY, MINDTREE, LTI, LTTS all are down and not showing any signs of strength yet. As I am writing this letter AMAZON declared its results yesterday on Thursday and is now trading @ -12%. Due to this NASDAQ is also down and hence we see that rub off in INDIA.
Cautious on all IT names.
NIFTY METAL
A sharp fall in NIFTY METAL as well from ATH and reached 50 DEMA from which it can take support. Also, FII has increased its stake in HINDALCO. TATASTEEL looks weak from the day of bonus news. Keep track but again don’t force.
Am on purpose not sharing any STOCK. If indices don’t show any strength there’s no point in trading stocks. Still, if you want you can keep eye on some names like SBI CARDS, BEL, INDIAN HOTEL, and SRTRANSFIN.
Also talking about LIC IPO, it’s a big NO for me!
So that’s it from my side guys! See you at the next one!
Adios!