February 2014

 NIFTY SPOT INTRA

 NIFTY SPOT INTRA

 MY WEEKLY TAKE ....

Trading levels ---  10^th / 14^th February   2014

Last weekend, I was away so did not write.  In last 2 weeks, we went down by 330 nifty points and then bounced up 130 points showing nett loss of about 200 points. On daily charts, we have left two gaps …. 6188 to 6263 and 6082 to 6109 ….

Out of this 6082 to 6109 gap is likely to be filled on Monday morning as I expect a 50 point gap up opening. But any further progress needs a lot of ammunition by way of strong FII inflows. 6130/6150 zone which acted strong support earlier will now become a strong resistance.  Even if FII remain small sellers, I don’t think we will be able to cross the hump only with DII support.

 US market has started looking up again and that strength is very much needed for our market to perform. So keep an eye on US futures all the time. Moment you find US futures weakening, you will find our market losing sheen – even during intra-day movements.

 TCS did give a low of 2112 last week vindicating my proclamation  made two weeks ago that we will see 2100/2150 levels in near future.

I will recommend to buy 6000 put on Monday morning when NIFTY spot moves to 6120/6130 level and hold it till nifty crosses 6160/6170. There is 1 : 3 risk reward waiting …. While you may lose 15/20 points if nifty goes up , you have a chance to make 50/60 points if nifty corrects to 6030/6050 level.

As I always say, we have to play percentages to make money. Bold bravado may not help.  WHAT DO YOU SAY ? ? ?

FEBRUARY 2014 TRADING LEVELS are out ON 1^st FEBRUARY. You can have a look at the same before entering fresh trades. I have also released CY 2014  trading levels  on my website – http://www.sumamura.com/sumamura-messages/. 

Please remember CAPITAL is always scarce and needs to be respected.