Tag Archives: Sell on Rise

Nifty and Bank Nifty Technical Analysis for 24 Oct’13

Nifty as on 23 Oct’13– 6178.35 (-24.45)    Bank Nifty as on 23 Oct’13– 10880.70 (+71.60)

After two days of indecision market turned volatile. On closing basis Nifty gave candle like Hanging Man which adding vigor to our skepticism. From this level, obviously two probable scenarios emerge, and most of the readers want to know that whether to turn bullish from this level, or bearish? Strategy should be Buy on Dips or Sell on Rallies?  Now, we are more biased towards downside, and we prefer to go with an Idea of Sell on Rallies. But don’t you forget, that derivative data and few sentiment indicates that still some buying can emerge and which may take indices higher, any which ways Bank Nifty is looking positive altogether and now PSU banks are coming into play. So even if we have to go for sell than why not go in phased manner with Big Boys; may be 6300+ level is good to level to look for selling opportunity.

Keep visiting Way2Profits, for unbiased Daily view on the Nifty and Bank Nifty.

Nifty and Bank Nifty Technical Analysis for 03 Oct’13

Nifty as on 01 Oct’13– 5780.05 (+44.75)    Bank Nifty as on 01 Oct’13– 9883.30 (+265.50)

Now, there is discrete opinion and talks are spreading in the market, that it is Buy on Dips market or Sell on Rise?  Generally, it is common phenomena, that one camp is always believe that it is Buy on Dips and another strongly believe that this market is not going anywhere, it is always Sell on Rise, we call them Bull Camp and Bear Camp respectively.

At this juncture market looks like in a neutral mode and both the camp are coming ahead to prove their point, now it is upto trader, with whom they are convinced most and likely to join the party. If, we see current Global developments than there is nothing much Bull Camp can talk about, only we have emerging market story which is persistently talked about from last more than 15 years. And, at the other hand we have more favorable Bearish News floating around in the market. This is all about, what we generally never talk about.

We come to our point, since from last couple of sessions, markets are giving shocks in either way.  It seems, that market reached to a point of climax where we need to take call on the market, based on our research, till year end market is likely to stay muted, but at this juncture Nifty has strong support near 5700 levels. At Way2Profits, we sense that it is Buy on Dips market, as long as Nifty holds above 5700 (if you are risk averse trader) and 5500 is level, if you wish to take risk of 200 points. Below 5500 we surrender and join party at other hand, but above this level, we should be Buying on Dips.

Just don’t blindly follow above view. Even if it is Buy on Dips, proper risk management can help to mitigate risk associated with trading.

Bank Nifty is surprise package and can drive you crazy. If 9587 remains intact then we see fare chance of Bank Nifty testing 10400 levels.

Keep visiting Way2Profits, for unbiased Daily view on the Nifty and Bank Nifty.

Buy on Dips, Sell on Rallies

I know many readers, who understand the meaning of Buy on Dips, but they don’t know how exactly that means. Generally, any analyst after doing its research comes to a point where he/she had a view that broadly market is going to rise or going fall, based on that it gives a suggestion to their clients.

When we say Buy on Dips means, analyst has a Bullish View and stock has potential go much higher from current levels. In that case, whenever market falls or correct, that particular downfall should be utilized to accumulate the stock which were talked about. For example, Nifty is trading near 5800 levels and it has a fare chance to move higher in coming future, but there could be a chance that in nearest future Nifty may correct towards 5700-5600 levels. Now, in above scenario if you are not pure swing trader than you should utilize this correction to accumulate Nifty and Hold for higher levels to achieve. May be Nifty might test 6000+ levels again, in that case Buy on Dips gives you superior returns.

buy on dips, sell on rise by way2profits

 

When we say Sell on Rallies means, analyst has a Bearish View and stock has potential go lower from current levels. In that case, wherever market rises to some extent, that particular rise should be utilized to Sell or Book Profit in that Stock or Index. For example, Nifty is trading near 5800 levels and it has a fare chance to correct or witness downfall in coming future, but there could be a chance that in nearest future Nifty may move higher towards 5900-6000 levels and analyst believes that now there is limited upside and downside potential is higher. Now, in that case, trader can utilize any rise as a selling opportunity in Nifty and hold for the lower target

Above concept should be utilized with proper game plan, because if you don’t know where the turnaround point is, than there is a chance that you may go bust. So, it is always advisable that don’t hear and trust any media news, unless and until you closely follow them. Because, it is their duty to give you advice based on current market scenario and development, and which may be good for day, but once turnaround points come, they are not going to come again on News channel and going to give you advise that please exit from your position. So rely, only where you get consistent view, like we give at Way2Profits.