Weekly Update

NIFTY registered the best week of gains in past week since the giant rally we witnessed after the budget in February. It achieved all projected Targets on upside and even exceeded all projections. It is a very strong market Technically as of now. But chasing this upmove is very risky task. But as far as cycle supports are held things are fine for now in short term. This is a market where the risk of downside is much more greater then the joy of upside. So anyone chasing the rally must understand this fact. We are not at 15500 we have 17300 on our screens. So there is a huge difference in the approach. NIFTY has completed the Harmonic rotation from 15430 to 17200 so he correction of 6 to 10% is always possible. Anything above 17200 is a bonus which might not last beond 1 or 2 weeks. Even if we hit 17700 or 17800 in uforia ultimately it has to come back from there. As I mentioned last week above 17200 it’s very tricky to trade NIFTY. The only safe way possible is to hedge the long trades with December Puts. Personally not intrested to participate in the rally from here specially on NIFTY. Would rather prefer buying banking stocks in cash with a hedge. nifty bank Has to complete its unfinished business of hitting new all time high. Individual stocks are better then overstretched Indices. Coming to support levels now. 17000 and 36000 on both NIFTY and NIFTY BANK would be very important support levels in coming days. As far as these levels are protected setup remains buy on dipps. On TIME front important Time Cycle dates for this month would be. 6th of Sep,9th of Sep,14th of Sep,15th of Sep,21st of Sep,23rd of Sep and 28th of Sep 2021. The week starting from 13th of Sep would be very critical for Global Markets including INDIA. The month of September wont be easy for Traders. Lastly the sectorial breakup which I gave on 22nd Aug remains largely the same. It’s just the Individual out performance which is holding the index for now. I would be more conscious if I see 17500 on NIFTY in this week. Until the supports are held no point going short. Because the first lesson you learn in Technical Analysis using any methodology is to respect the trend. As traders we only can manage our positions and demotions. What’s important is to stay safe in such markets.