Nifty Prediction for tomorrow 4th Aug 2021 Nifty trend is up Buying on dips can be done till we do not close below 15900 spot level for targets of around 16450.
Nifty finally has broken out from the trading range that was in place for the past 8 odd weeks. Now the trend remains on the upside till we do not see a close below the 15900 spot level mentioned. However, trading will have to be very stock-specific. SBIN looks to have broken out of an ascending triangle. Do keep a watch on that.
This week we did trade Hindalco and made some good money there. Trades in Mcleod Russel and titan were also done but they also did well. Overall, we see buying on dips strategy to be used for trading in the near term. Many traders are short in the market and we do not recommend short selling unless the major trend does not change to down.
Bank Nifty Prediction for tomorrow
Bank Nifty has also been in a sideways trend however with a negative bias. Bank Nifty has now reached the bottom of the sideways zone and can see some bounce. However, I would avoid trading long in the banking sector for now with the exception of Icici bank and State bank of India. I would prefer trading in stocks that are in an uptrend like Nifty so look at stocks in the capital goods space or the reality space.
Weakness in HDFC bank and underperformance in HDFC ltd also is an area of concern. These stocks should see some bounce back in the near term but I would not prefer buying them as they have been underperforming in the near term. If something changes then we too will change our view on them but for now we will not look to trade them.
CNX Reality index is about to break out after a long-term sideways to negative move. Kindly refer to the charts below
As usual, if you are only trading on the basis of this post please use your own risk management and then only trade. Please do not over-trade and always keep your risk in check.