We are going to tell you the ways and means to make money in December series and nothing can be better than Dec month as December is a 5-week series. As is typical with other long series months, markets trade in a wider range. It means you see, volatility and contraction both in a month. We have been trading in a range for the last 2 weeks and broke out in Bank Nifty yesterday but Nifty is still stuck. Another point is our valuations....we are one of the highest valuation-based markets and have been outperforming for the last many months. This will someday come back to the mean as we see a lot of overheating on charts, especially banks.
6 months back, we stated that domestic engg and manufacturing should outperform which has done very well. Nifty PSE is doing very well and should continue to do well. Nifty IT and defense should be the outperformer today.
Nifty. Gap up to 65 points as we write. The magic number is 18650. Below it we are weak and above 18740, we are strong. Overall support is placed at 18550.
BankNifty. It did give a breakout. Above the 43650 spot, we can see 44000 near about. Support is placed at 43300.
