It has become habit for Nifty to open better and suddenly making a lows in first 30 mins and on Friday it has opened at 6179 and made a low of 6140 and recovered later to made a high of 6137 and later started giving up all the gains and closed below its open price. We saw full 100 points swing on Friday’s session but it give up almost 70 points from its intraday high in post 2 pm trades.
Short term trend
Nifty is now in no trade zone for positional trade. What we have seen is Nifty is making lower lows but was not breaking down or making a decisive move despite a non convincing effort on Friday and as expected made a U turn and closed just above the previous days lows. The key levels to be watched are below 6130 which is 38.2% Fib level taking 5972 as low and 6416 as hig and also very strong support on many parameters, we are going lower to 6066 and 5972 levels which is a very much possibilities as we have couple events like Q3 results and also data lined up on January 13th which is CPI data for November and WPI data on January 15th could set the trend and on the other side close above 6250 is very important for Nifty to go to higher levels. Markets are going to be choppy this week and suggest to trade with caution. Nifty has closed near 6170 which is 50 EMA for three day consecutive days in last week. PCR ratio has come down below 1 to .988 and VIX has come down to 15.58 from above 16.5 levels. We have Nifty majors TCS, Axis Bank, Bajaj Auto, HCL Tech, HDFC Bank, Reliane, ITC and Wipro coming up with results. Poor IIP number are blessing in disguise as RBI will think twice to increase Repo rate and US job figures will help the markets.
Intraday levels
Based on bad US payroll data Nifty if it opens open with a gapup of above 6192 which is 50 DMA and i feel if we can sustan above this for today it is good for the market. Above 6192 is good for 6210 and 6225 and below 6170 we could go to 6155 and 6140 where you could find good support. We are at a key level and we may see small rally towards 6220 where we could see resistance and can be used to sell Nifty if it comes down after crossing.
Top picks for the day
My top pics for the day are ITC, TechM, HCL Tech, Apollo Tyres, Asian Paints and Zeel. For Buy/Sell and correct levels contact vijaykumarrao.invest@gmail.com.
Pivot levels for key stocks
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