NIFTY-
Yesterday NIFTY crosses its 50DMA thus showing some strength to scale towards 5600 and 5650. If it continuously trades above 5550 then buying on dips should be exact strategy.
Further NIFTY also shows positive divergence on the chart which further strengthens its position.
Trading Strategy
There may be some pause on NIFTY because of almost 380 points rally. So it is better to take some profits.
PP | R1 | R2 | R3 | S1 | S2 | S3 | |
NIFTY | 5520.0 | 5578.0 | 5610.0 | 5668.0 | 5488.0 | 5450.0 | 5430.0 |
SBI | 2769.0 | 2798.0 | 2817.0 | 2846.0 | 2750.0 | 2721.0 | 2702.0 |
Hindalco | 212.0 | 213.7 | 215.9 | 217.5 | 209.9 | 208.3 | 206.1 |
Tata Steel | 651.0 | 660.0 | 666.0 | 676.0 | 645.0 | 635.0 |
HINDALCO
Since in this whole metals rally HINDALCO hasn’t performed so buying it would be a risky call. If one wants to buy, buy it around 208 and keep SL of 205. There is negative divergence on chart therefore, a weak call.
Compared to Hindalco, Tata Steel is better call.
TATA STEEL-
Due to astounding Quarter results, it’s a buy call but in a planned mode. Since it has rallied all the way from 578 to 656, I feel it will cool down a little. So buy on dips is correct strategy.
STATE BANK OF INDIA
Next major resistance is 2850. So buy cautiously with strict SL of 2710 
