INSUBCONTINENT EXCLUSIVE:
By Jay PurohitWhere we areThe week kick-started with a gap up opening on Monday; but bears took that as a shorting opportunity and dragged
the Nifty lower by around 150 points from its opening price
The sharp fall of Monday was followed by a negative price action on Tuesday
However, the Nifty seen sharp recovery in the later half of the week
In last three trading sessions, we witnessed good amount of put writing in Nifty options and market breadth too remained in favour of the
Eventually, the rollercoaster week ended with the gain of one-third of a percent over its previous close.
What is in storeThe index has
For the momentum to pick-up, Nifty has to cross 10,820 level
In that case, we may see continuation in ongoing rally towards 10,950-11,000 levels
small-cap and few large-cap stocks in last couple of months
We need to be very selective in stock picking; wait for the strong reversal signal before initiating fresh long positions in beaten down
Traders are advised to adopt stock specific approach with proper risk management
Few stocks which can be traded with positive bias are Tata Elxsi, UBL, Ajanta Pharma and Bajaj Finance.
The author is Technical Derivatives
Views expressed are personal.
