Equity market outlook: Every 20-30 points dip in Nifty is buy

Updated: Mar 28 2014, 23:37pm hrs
StockWeek begun on a green note with Indian Equity benchmark index, Nifty April Fut opening at 6708.
Week begun on a green note with the Indian Equity benchmark index, Nifty AprilFut opening at 6708 and traded at highs. On last day of the weekly session benchmark indices managed to test new highs and Nifty April Fut closed at 6735 up by 180 bps and BSE Sensex closed at 22339

NSE Nifty April Future is further looking bullish on chart, as mentioned in our previous report that every 20-30 points dip in Nifty is buy. We suggest traders to adopt same strategy again.

Currently, Nifty is hovering around 6730, if it again comes around 6700 level, traders should use the dip and add further long position in portfolio for the target of 7000. While on lower side it has a strong and immediate support of 6640.

Stocks to watch on:

IOB FUT -Technically stock is looking strong on charts as recently it has initiated its recovery phase and is verywell trading with positive biasness. It is trading above its 200 & 50 days moving average with an RSI of 67 there fore positive sentiments are in the stock if it manages to sustain at these levels targets of 56-56.65 can be expected its SL is at the levels of 53.20

BHARAT FORG FUT-Overall trend of the stock is bullish, recently it has shown slight correction and further trend continuation can be expected. Stock is sustatining above its 10 and 50 days moving average cross over there by indicating some positive strenth. Its RSI is 61 if it manages to cross its resistance level at 415 targets of 427can be expected. Technical Stoploss to be maintained is at 404

By Vivek Gupta, Director Research, CapitalVia Global Research Limited