Amazingly, Nifty behaved exactly as antcipated last Sunday.
Now, over the weekend, everyone is wondering - what next?
Everyone is now looking at the 200 DMA which is at 4981 as of today.
One hint regarding whether this level will be broken is generally given by Options data - and it seems bulls are intending to defend the 200 DMA at least for now.
Have an eye on the following levels:
4900 ce - 165 (current 200); if the level of 165 is broken decisively on the gap down on Monday, then 4981 might be tested.
However, there is a catch.
Someone is trying hard to prevent Nifty from going down in a hurry. Apart from the Options data, this is more apparent from something else that was noticed in the last few minutes on Friday.
NiftyBEES made a low of 507.6 (equivalent to Nifty 5076) and rocketted to a high of 518.25 (Nifty level of 5182) within a matter of 5 minutes almost towards the close. Moreover, this was with very heavy volumes of 12500 after 3.25 pm. Refer chart posted here.
This only means one thing - Nifty might again surprise everyone, by recovering from the lows next week, and might rise all the way to 5180 levels once by expiry.
All this sounds strange - but stock markets have a tendency to surprise everyone - on the downside, and also on the upside.
So, be prepared for another roller-coaster ride next week.
Keep an eye on 5026 on Nifty spot to start with and the 4900 Ce level given above, and then 4981 and also the NiftyBEES and you will know what the Nifty wants to do.
For long term investors, do not invest in Bharti right now in a hurry. Although it can give some fast upmoves, it seems to be going towards a good support of 232 soon, and if that is not held, then even 134 is possible, and then all the way down to 59!!
Do not invest in telecom stocks in a hurry!!
2 comments:
Thanks for your guidance Abhijit. I think you are right. One must keep a watch on Nifty Bees. I sometimes wonder how much data do you people have to read to be able to decide judiciously.
Dear Abhijit, It is really amazing how you are able to look throught the mkt. How do you avoid your emotions from taking over when looking at a chart ?
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