Those who have read my last post on Nifty here at Fresh Breakout? What Is The Next Target Of Nifty? must have made good money buying Nifty. I clearly was bullish on Nifty and Bank Nifty and both the indices have made good money for long trades. So Nifty has reached almost 8750 post union budget 2017. Now what should be the trading strategy for Nifty? Should you short it? Should you buy now? Fist lets have a clear idea on the trend. Nifty is no way a shorting candidate yet. Just wait for dips to buy, every 30-40 points downmove, just buy it and you are likely to make money.
Advanced Get studies show that Nifty is in strong bull trend. The blue XTL bars and the rising regression channel confirms the uptrend. You can buy in every dips till the uptrend in the trend channel is intact and till price rises inside the uptrending channel. Also see the Get Stochastics is in overbought zone indicating a strong uptrend. See the image below:
See that my make or break final target is visible at 9150-9200 level. Sooner or later Nifty will hit that zone. I cant say by what time it will reach 9200, but that target is still intact.
What should be the trading strategy for Nifty on Monday 6th February 2017? Last Friday, Nifty has made an inside bar with narrowest range of last 7 days. So any breakout above the high of Friday will trigger a buy signal for a target close to 8820-8830. The stop will be below the low of Friday’s bar. On the other hand in case Nifty breaks Friday’s low aggressive traders can try shorting for a target close to 8630 with a stop above Friday’s high.
Hot stocks for next week:
I have some stocks in my list who can bounce up sharply in a few sessions. You can buy HINDUNILVR, POWERGRID, TATAMOTORS, TATAMTRDVR. POWERGRID seems best out of the four. You can even try close to money call options for a quick profit. Shorters can have a look on INFY. Fresh upmoves can be shorted intraday OR short term basis.
Indrajit is a professional blogger and trading system developer. Amibroker expert, Wordpress expert, SEO expert and stock market analyst.Trading since 2002, he has started the journey of StockManiacs.net on 2008. He follows Indian and world stock markets closely.