Dear
Trader…
As expected, the market continued its upward trend as
supportive global cues led to a positive start which was further fuelled by the
buying in index majors. Consequently, markets touched a new high largely led by
healthy buying in Auto and IT counters. However, volatility is still high on
the stock-specific front.
Foreign portfolio investors, FIIs, took a bullish move
for the second day in a row as the stock market rebounded in the new week
following a late February crash on the technical side of the NSE amid massive
block deals last week, according to data released by the
NSDL, the FIIs as per Tuesday’s data were net buyer in equity segment,
while net seller in debt segment, In equity segment, the gross buying was of Rs
7929.62 crore against gross selling of Rs 7080.21 crore. Thus, FIIs stood as
net buyer of Rs 849.41 crore in equities.
We’re mirroring the global markets and fluctuations in
the value of the US dollar against the rupee, uninterrupted inflows of foreign
portfolio investors, and ongoing developments on global markets meanwhile we
suggest maintaining a positive yet cautious stance and avoiding contrarian
trades.
Friends, the Indian stock market is booming in every
sector due to the relentless influx of foreign investors. Traders with a stock
specific approach are more likely to book profits through intraday trading. In
a bullish mood in the Indian stock market, investors as well as traders are
showing a cautious attitude with enthusiasm.
We are bullish on the market although
after the sharp correction, we are concerned about the valuation of the
market.
As the market has been in the overbought zone it will not
take long for the scenario to become difficult to sell again in a sudden
correction. So that caution will be necessary. Investors can book profit in a small portion of
their portfolio.
Nifty continues to remain in an uptrend in the medium and
long term, so buying on dips continues to be our preferred strategy.
The strength indicator RSI has turned positive from the
oversold territory and is above its reference line indicating sustained
uptrend.
The trend deciding level for the 3rd March is 15007.
If NIFTY trades above this level then we may witness a further rally up to 14909-15088 levels. However, if NIFTY trades below 14909 levels then
we may see some profit booking initiating in the market.
The Nifty future index has immediate support at 14909 levels, sustaining above which will lead to a pullback in the coming week. Failure to do so will signal extended correction.
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