Happy New Year

My best wishes to readers for a happy, prosperous New Year.
Today’s trading (December 31) saw the Nifty trade in a narrow range, with the daily range being the narrowest in seven days. Market was confused.

A trading range between 2800 and 3150 is visible on the daily chart. A breakout from this range should give a strong, trending move.

The Mid Point of this range is around 2975. If the Nifty were to close above the mid point, it will be an indication of some strength. Aggressive traders can take long positions, but they should exit on any close below 2975. If the Nifty were to oscillate around 2975, then these traders could be in and out many times resulting in whipsaws.

PNB remains a strong stock, outperforming the Nifty as well as the Bank Nifty. Traders could select this stock as a buy on dips candidate. Avoid going short. On signs of ‘overbought’ or ‘weakness’, stay away. On signs of ‘Oversold’ or ‘Strength’, buy.