Buy on dips mode augurs well for Diwali Muhurat trading day: Anand James
Geojit Financial Services.
Nifty having taken support at 19329, the recent reaction low on Friday, a buy on dips mode is in play, which augurs well for Muhurat day and for those worrying about a dip on the next day, he says. Edited excerpts from a chat:
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Offering CollegeCourseWebsiteIIM LucknowIIML Chief Marketing Officer ProgrammeVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisitIIM KozhikodeIIMK Chief Product Officer ProgrammeVisitNifty showed resistance around 19,460 level in the week and consolidated in the last 2 trading sessions. What would be your strategy on Muhurat trading day? Many traders do token buying on the occasion and as a result Sensex mostly ends in the green but due to profit booking the next day it falls.
Muhurat trading is a special session arranged for the occasion, and it is normal for excesses to be skimmed off as regular trading resumes the next day. However, those participating in the session on an auspicious note do not look at intraday or overnight gains. Incidentally, we have also seen Muhurat trading days seeing dips and that has not prevented stocks from gaining through the Samvat. Also, this being a stock specific exercise, Nifty’s trend takes less of a predominance as it does on regular days. That said, Nifty having taken support at 19329, the recent reaction low on Friday, a buy on dips mode is in play, which augurs well for Muhurat day and for those worrying about a dip on the next day. Going forward, we expect 19170 to hold in the event of extended dips, with intermediate support at 10-SMA of 19262, while an outright rise above 19433 could also signal that we are back on to the 19840 trajectory.
Nifty Bank
