Nifty Strategy for Today: Explaining the strategy on Nifty , Virendra Kumar of CNBC-Awaaz said that the first resistance is at 23045-23081 while the major resistance is at 23166 (10DEMA)-23204/264 (20DEMA). The first base is at 22785-22831 while the major base is at 22666/22693-22738.
Virendra Kumar further said that yesterday we got a great trade on the first base, the first resistance was the day's high. Momentum is increasing but IT, FMCG are holding back Nifty. A good push is coming from banks. FIIs selling reduced, FIIs bought the index. While the 23000-23100-23200 zone is occupied by call writers. Nifty's 10 DEMA is at 23166, 20 DEMA is at 23204.
Virendra Kumar further said that sell in every rally below the first resistance. Buy at the first base (there is a little risk), the risk-reward is good. Strength/short covering above 23081, if crossed then 23166/23204/23264 is possible. The first base is working right now, if it breaks then we can slip to 22266/22693-22738. Note- go short in FMCG, if 200 DEMA breaks in Nifty IT then there will be pressure.
Strategy on Nifty Bank
Virendra Kumar said the first resistance is at 49819-50004 while the bigger resistance is at 50163-50489/50533. The first base is at 48910-49262 while the bigger base is at 48510/48651-48784.
Virendra Kumar further said that yesterday there was a great buying on the first base, the first resistance was also crossed. There was strength in HDFC Bank, Kotak Bank, there was also a good reversal in government bank shares. Closing above 10/20 DEMA, strong put writing was seen in 49000 zone. There was a gathering of call writers in 49800-50000 zone. The big average (200/50 DEMA) was at 50100/50163 zone.
Virendra Kumar further said that keep an eye on the movement of HDFC Bank and ICICI Bank, firstly, buying strategy on the base will work. Firstly, buying on dips on the base will work. Secondly, if it stays above 49600-49650, then a rally can be made. Above 49650, it can move towards 49819-50004 and then 50163.
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