On 9th October 2019 Nifty opened at 11152, made a low of 11,090, High of 11,321 and closed near high at 11,314. If you refer to our newsletter for 7th October, it is clearly mentioned their, support of 11100 and today Nifty made a low of 11,090 and bounced back from the level.
The big question is what next from here on? I believe Nifty should remain in the range of 11050 to 11,500 for this month. Stock specific action should continue and volatility should drop.
As we can see from the daily chart Nifty is at support and has made a very strong candle today ( 9th October), which indicates Nifty should respect this level at least for this month. This chart is a classic example of “resistance becoming support” . You can go for a rangebound Nifty strategy like IRON Condor to profit from this situation, with a slightly bullish bias.
In the hourly chart as we can see 10,400 is a strong resistance. If Nifty touches it and make some negative structure then it can be a good shorting opportunity.
Stocks analysis for the Day
- Raymond: Buy at 595 with a stop loss at 584 and a target of 620 and higher. It can be held positionally also. In the monthly charts, it is a very strong support level( Classic example of Resistance becoming Support).
- LIC HFin: Buy at CMP to 375 with a stop loss of 369 and a target of 400
- L&T H Fin: Buy at CMP with a stop loss of 78 and target of 92( 1 week)
- Keep HDFC also in the watchlist
- Keep IT stocks in watchlist to create short sell position
Chart of the Day
The above chart is of Mcdowell-N, a daily chart. It is in the uptrend and it can be bought above 626 with a stop loss below 616 and a target of 645.
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