Market View - 11/12/17 to 15/12/17

Another full trading week ahead.

Nifty50 has moved into a small range 10360-10100. Either side of that range will give clear trend signals. Till then only short term trades possible.

This week,

Buy on dips to 10200 looks possible.

Only below 10200, small SHORT SELL trades can open up.

Only below 10000, medium term downtrend will start!

Note : Sensex has also moved into a range 33650-32800. Best signals will come on a breakout on either side. Till then only short term trades possible.

Bank Nifty downtrend has ended? We will come to know soon.

                                           

This week,

BUY trades possible above 25350.

SHORT SELL trades possible only below 25150.

Early in the week a dip towards 25200 can happen which can be used to buy if the support holds.

Other Sectoral Indices –

POSITIVE –

FMCG - (Positive till 26200 holds)

(For now, BUY trades in individual stocks possible but only on dips)

Auto - (Positive till  11200 holds)

(For now, BUY trades in individual stocks possible but only on dips)

NEUTRAL –

IT – (In a range again! 11350-10960. Best opportunities on a breakout)

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

Metal – (Current downtrend can pause if 3575 support holds) (Medium term downtrend starts below 3500)

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

Energy - (Still In a range 13860-14490)

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

Pharma (downtrend momentum below 8980) (short term positive above 9150)

(For now, SHORT SELL trades, in individual stocks possible with low volume)

Realty (Short term Negative below 318) (Short term positive only above 323)

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

Personal Notes:

Sometimes trades in a particular direction become obvious, like early last week.

But now, patience and waiting for the right signal will be the key.

Was the downtrend that started last week, a false breakdown??

Or is the rally on Thursday and Friday last week, a false attempt to keep uptrend intact?

Volatility index is back in its earlier range again (14-10)

Early in the week, volatility may rise a little.

Above 14 it can cause market to become volatile again!

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.