Get ready to test 8,650-8,700 on Nifty
I wish to first address whether it makes sense buying stocks after three days of an upmove. I believe it makes better sense now to buy into. I was not sure till the beginning of the Friday's trading session. But after an initial hour, we saw Nifty comfortably trading above 8,500-mark and. It was a very clear breach on the upside. Whatever be the reasons, now we are in for a move from 8,400. Nifty is in a range of 8,450 to 8,650 and I believe that the bottom has been reached.
The bearish view that we had is over. The bulls are not willing to let go and we will certainly test 8,650 or probably even one shade higher than that, may around 8,700-8,750levels. On a correction of 30-50 points, I would be a buyer on Nifty as well. All this while, it was more of a stock-specific day. Now, the Nifty is ready to move towards 8,650-8,700 and, on the downside, 8450 may not be broken on the index. You can have a very close stop loss of 8,430 or so and play for a 200-250 point on the upside.