Market outlook for the month of September,2012

September 4, 2012   ·   0 Comments

 

Last Month we asked our readers to buy when it was trading at 5280 levels and asked them to book profits at 5450 levels. I hope the one who have acted on the advice would have benefitted.

 

Check out the for the month of August:

Market Outlook for the month of August,2012 

 

Trading strategy of the week:

 

At this juncture, looking at the daily chart it is clear that our benchmark indices are facing strong resistance around ’20- day EMA’ placed at 17560 / 5316 level. Hence,  only a sustainable  move  above this level  is likely to change the underlying negative sentiment. In this case, indices may rally up to next resistance level of 17712  / 5360. Conversely,

 

Friday’s low of 17338 / 5239 is likely to act as a key support for the markets. A breach of this level may attract further selling pressure and as a result, the markets may  slide towards 17123 / 5190 level.

 

 

 

Market Outlook for the month of September

 

On options front 5300-5700 call option has seen significant amount of buildup in open interest followed by some unwinding in  5800 strike price,  while in put option  4900-5000 strike price  have observed considerable amount of buildup in  yesterday’s trade

 

Highest open interest right now is at the levels of 5200 Puts and 5400 Calls which signifies the immediate support and resistance for this week. We may consolidate in this range for a month. There are multiple resistance at 5400, 5500 and 5600 levels and all the levels seems to have the almost same number of open contracts which shows Bears are betting hard that Nifty will not cross these levels.

 

We will not advise any long at this point of time though aggressive traders can short 5500 calls for the month of September.

How are you trading the Nifty, bank nifty in this month? Share your trades with readers. 

 

Refer this link to know how to invest in Gold and the returns offered by Gold:

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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