We are of the opinion that positive bias will be maintained irrespective of the dip caused due to mean reversion traders mentality. Book profit at higher level and rebuy at lower will be the strategy for day. Do check our bank nifty option tips and remember to make it is habit to read our Nifty & Bank Nifty Tips on a daily basis.
The market has shrugged off all the negative news and we need to wait till Wednesday to know Fed interest rate hike impact.
Nifty & Bank Nifty Tips
Lots of results reaction, Nifty near resistance levels will give us a volatile week. Last week we closed near the highs of the week giving us a bullish weekly candle. To many it looks like a breakout to many but we need to be under the fact that we need more consolidation before sustainable upmove.
This week has a lot of news flow and hence unknown risks will be in play. The move today will depend on how well ICICIBANK will move and how badly Reliance and Infy will perform. This tug of war will give us Volatility. There will be lot of international news with US FED meet on Wednesday and results of top global companies in US.
So, the best strategy is trade with hedge and for small gains.
Nifty. Support is placed at 16650 and resistance at 16840. Above 16840, we can move ahead sharply.
BankNifty. Already a big performer so far. Support is placed at 36350 and resistance at 37200.
Derivative. This is interesting. Call writing suggest 17100 can be seen on Nifty this week.....but it depends on lot of factors mentioned above. Overall data is bullish.
Clear buy on dips.
