The market will see the election days this week, as well as start of the earnings season. The markets have hit an all time high of 11761, however it has failed to move or close beyond that point. The market is at a precarious stage. Technical indictors of moving averages indicate that the market is planning to move higher, which is also supported by a long bullish candle created on 5th April. However, any failed breakout is a great chance to short. The levels of shorting the market will be at 11714 levels for the risk takers, however, any fall breaking the 11650 levels is highly likely to make money for the trader.
For the Nifty Index, Bank nifty has been a drag, however IT stocks have pulled the Nifty up.
On the buy side, any strong movement, ie supported by volume, towards 11800 should be considered for a buy.
Sell below 11650 levels for a stop loss of 11725
Buy if 11800 is crossed with significant volume
The Bank Nifty is following the same pattern as that of the Nifty – Hitting highs and showing signs of possible breakout. However, it must be noted that for the Nifty there are other sectors to balance out any fall, however, for the banks, the breakout is not likely. The candle on 5th Apri does not provide any decisive action. It will be wait and watch scene.
The levels to look out for are, for sell, any failure below 29895, the low of the last 3 days, is a good chance to enter into a sell. We would not recommend a buy for Monday, and will update the call sheet post market hours on Monday 8th April.
Sell at 29895 levels. Stop loss 30150, Target for 50 to 100 points.
No Buy calls for 08 April.
Warning: Dealing with Futures and Options is considered highly risky and there is all possibility of losing the entire capital in a single day. The recommendations provided here are only for those who understand the risks of F&O. You must undergo a risk profiling before taking positions in F&O. Proper risk management – ie stop losses and money management is more important than just technical analysis.