Nifty : Head and Shoulder

We had posted on this blog about our downward biases on Nifty. Though  yesterday market had a volatile session but at the end Nifty had a weak closing.
On daily chart Nifty is making head and shoulder formation and the neck line is around 5950-60. If this neck line is broken and FIIs inflow dries up or some money is taken out then there is hardly any support from Domestic front.
The target for Nifty if the neck line is breached comes around  5650-5700.
One should remain cautious and should wait for the reversal in trend.

Aviation Sector: Jet Airways and KFA.

Yesterday Nifty tanked down Now the main pivot is at 5966. If Nifty is unable to trade above this level then traders should exit from all short term positions.Nifty is ranged and its boundaries are 5960-6150.
Market can not remain in this range forever . It has to come out of this range at present the biases are on downside.If 5960 is taken out then we may see 5800 also.

Aviation sector as a whole stood the onslaught which was witnessed yesterday. Jet Air, King Fisher Airlines and Spice Jet saw jump in price with surge in volume. Our swing trading ideas Arvind Mill also outperformed.
King Fisher Airline has got support at 79 and resistance at 86-90.

Trade less, trade well

Banks outshine again

PSU Banks are outperforming in this ranged market.
Dena bank had a spectacular closing yesterday with large volume and this stock can be accumulated at every dip.
Crew BOS has support at 185 and resistance is at 230. This stock also closed at new high.
Textile sector is another space which is outperforming the broader market. Keep Arvind  Mill on your radar.
Markets may remain volatile on the back of future and options expiry.
Nifty has support at 6030-6050 and resisatnce is at 6150

PSU banks as a sector outperforms

Banking space is the one space where one is going to make money consistently.

Andhra bank, Allahabad bank, Canara Bank all are trading at new highs and any dip should be used to buy.


Karur Vyasya Bank has come out of consolidation and may face resistance at 590-610


Trade less, trade well

Canara Bank and Central Bank zooms

Yesterday we talked about Canara bank and Central Bank and both of them performed well. Though market also supported the move but nonetheless both of them had a very good chart pattern.

Markets had a smart rally yesterday. Some of stocks made a new high after a  long consolidation.

Bhushan Steel and United Phos are the two stocks which saw a sharp run up to new highs .

Bank of India has also seems to have resumed its uptrend.

Volatilty may continue

As we have previously discussed that Nifty is in correction phase and the correction is not over. Volatile session will be witnessed and its very difficult to trade Index future during this phase. Pivot supports are at 5963 and 5930. Nifty is weak as it is trading below 20 EMA.

Canara Bank, Central bank, Dwarkesh Sugar, Castrol  looks good on chart . One should trade with small quantity and most of your money should be in cash  so as to take advantage of better prices and to avoid getting whipsawed in these turbulent times.

Smart recovery but the correction is not over

Yesterday  Nifty bounced back from key support levels but the correction is far from over . It needs to close above 6180 .Going forward Nifty may remain volatile as result season kiks in and may trade in a range.

Bank of India can be bought on intraday basis with stop of 524 and possible target of 538-550.


There are some stocks which are in correction mode but may come out of it and resume uptrend. Mcdowel, Exide and SRF fall into this category. Keep them on your radar . Of these three SRF looks strong on charts.

Nifty is at support level : Textile Sector in Focus

Nifty is trading at crucial support levels. Liquidity may tighten up  a bit on the back of Coal India IPO  but 5960-6030 are support areas.We may see  a pull back to 6150-6180 levels
Textile stocks as a sector has shown momentum build up.Garden Silk, Raymond, SKumars are good bet.
 Arvind has support at 47 and resistances are at 60-62.
Uflex has support at 290 and resistance at 350.