This week we are going to have huge swings in broader indices, we will surprise by the moves on both the ways means one day we may have strong up move another day with strong down move vice-versa.
So better to avoid this week, if one wishes to take the risk they can opt to go for the following strategies:
Case 1: If we have a gap up opening (Friday US surged with above 5% up move): Go short Nifty around 2850-2900 with a stop loss 2925 targeting T1: 2750 T2:2625 T3:2550 if we have a gap up opening.
Case 2: If markets opened gap down (below 4%) then one can go long around 2550 with a stop loss at 2475 targeting 2850-2900.
Case 3: If markets are flat (1-2 % up and down) then it will not give any trading chance wait for the break out.
In my view, we are not out of wounds. Friday rally can be described as short covering rally hence on every rally we can go short due to we are in “strong bear market” right now it has not gave any such meaningful evidence that we are bottomed out.
In case stock specific calls go long on every dip on banking and infra.
Buy SBI around 1115/- with a stop loss of 1075/- targeting 1205/- 1285/- and 1340/-
Buy Larsen around 710/- with a stop loss of 680/- targeting 790/- 830/- and 955/-
With thanks
Be and make
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