Nifty closed down for the first day this year after 4 days of rally.
On 5th January Nifty closed forming a solitary star doji and it was a sign of fatigue and Nifty again formed inverted hammer doji (like Wednesday).
Formation of red inverted hammer doji signifies that market is getting prepared for downward rally now.
So, now the expectation is that Nifty will get weaker by the day.
Presently even the most laggard stocks are running up and strong momentum in small caps means that the current rally is near end.
Although Nifty will see higher levels later on but for fresh uptrend it needs to pause now and correct a bit before it can leap forward.
As long as Nifty manages to stay above 5230 level in spot its not expected to fall much but any breach of 5230 may force Nifty to kiss lower level of 5200.
Closing below 5200 may push Nifty lower to 5149 level from where it must take a U-turn in order to regain momentum.
Now the Q-3 result season is about to begin and better results may fuel bull rally and if Nifty crosses and close above 5314 level it may leap further to 5344 level but it seams a distant dream in current scenario.
Stock Tips for Today
1. Jaiprakash Hydro Power NSE Symbol: JPHydro
Buy above 83.
Stop Loss (SL): 80.55
Target: 90
Holding Period: 1-3 days
2. Bombay Dyeing
NSE Symbol: Bomdyeing
Buy above: 492
Stop Loss (SL): 478.35
Target: 530
Holding Period: 1-3 days
3. Bombay Rayon Fashion Ltd
NSE Symbol: BRFL
Buy above: 208
Stop Loss (SL): 201.45
Target: 223
Holding Period: 1-3 days
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