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Positional trading after election result
The UPA has proved that they are far ahead of all other party alliances and are in a strong position. Market reacted positively to this happening and moved a 20% up-circuit for the first time in Indian history. This shows a positive move and we expect nifty to be steady and strong. The nifty has also crossed its 200DMA and heavy turn over also shows keen buying interest.
What to trade at this point of time?
It is no contradicting statement that there are still huge shorts which are still open. Also fresh longs would result in heavy volatility. www.sharetipsexpert.com recommends that all traders keep strict SL for all there positions. We also like to remind you of the fact that expiry for this current month of May is near. We also expect nifty to move up till 3700 and show some selling pressure from FII’s and big fund mangers to reshuffle their portfolios. LIC and other govt investment firms will book profits in slowing sectors. We also see trends in pharma sector as defensive and will lot yield big gains on the run.
When to trade?
Buying at this particular time may be fatal however buying on dips will always be the right strategy. People who have missed the investment opportunity at lower levels of 2500-2700 should wait and not jump to buy stocks immediately. Wait for a profit booking in the market and then invest slowly. We shall also recommend to buy in parts and keep building the portfolio.
What to buy?
Banking and infrastructure will be key runners in the market. Pharma will remain as a defensive sector and will underperform on up moves.
Disclaimer: The Calls made herein are for informational purpose and are not recommendations to any person to buy or sell any securities. The above calls are based on the theory of technical analysis. The author does not accept any liability for the use of this column. Readers of this column those who buy or sell securities based on the information in this column are solely responsible for their actions. The author may have positions in any of the stocks mentioned in this column.
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