Market View - 20/11/17 to 24/11/17

Another full trading week ahead.

Nifty50 up trend still intact. Is the correction over? May be! The gap up on Friday took Nifty above 10250, but, generally that is not how corrections end!!

Till 10250 holds, there is a lot of possibility that Nifty may move up.

Broadly, Uptrend looks okay as long as 10100 holds.

This week,

Buy trades look possible if Nifty remains above 10250.

Real momentum will come only above 10350

Note : Sensex is also showing similar patterns.

           Real momentum above 33710. Till then only short term trades possible.  

           Will start becoming short term negative below 33000.

Bank Nifty broke out from the top of its range last week.

                                           

This week,

Buy trades look possible if Bank Nifty remains above 25650.

Will turn short term negative below 25550.

Other Sectoral Indices –

NEUTRAL –

Metal (More positive above 3850 – Turns negative below 3650)

(For now, Short term BUY trades in individual stocks possible, till the index stays above 3750)

FMCG (In a range 25500 – 26200)

(For now, Short term BUY trades in individual stocks possible, till the index stays above 25600)

IT (In a range 11000-11350) (Can give a rally early in the week)

(For now, Short term BUY trades in individual stocks possible)

Auto (Positive momentum above 11450) (short term negative below 11050)

(For now, Short term trades in individual stocks possible)

Energy (In a range 13860-14490)

(For now, Short term SHORT SELL trades in individual stocks possible)

SHORT SELL SIGNALS –

Pharma (continues to be negative below 9170)

(For now, Short term SHORT SELL trades in individual stocks possible with low volumes)

POSITIVE BUT WAIT FOR SIGNALS –  

Realty (Positive only above 317) (Short term negative below 300)

(For now, Short term BUY trades in individual stocks possible)

Personal Notes:

If the range breakout has succeeded we should have a decent move on the up side.

Volatility index is in a range. Currently at the top end.

(above 14 can rise sharply till 16.5 – below 10 can drop sharply till 8.5below 10)

MOST STOCKS TEND TO FOLLOW THE TREND OF THEIR SECTOR INDEX.

BUYING SHOULD MOSTLY BE DONE IN STOCKS WHERE SECTOR INDEX IS POSITIVE.

SELLING SHOULD MOSTLY BE DONE IN STOCKS WHERE SECTOR INDEX IS NEGATIVE.

BUYING / SELLING AGAINST THE SECTOR INDEX SIGNAL CAN ALSO BE DONE IN INDIVIDUAL STOCKS, PROVIDED THERE IS A STRONG CASE FOR DOING SO.

Disclaimer – Please do your own analysis before taking trades.