Market View - 18/12/17 to 22/12/17

Another full trading week ahead.

Nifty50 is still in that range 10360-10100. Last week it did try to break out on both sides of this range, but could not do so!

Either side of that range will give clear trend signals. Till then only short term trades possible.

This week,

Early in the week, news based volatility could take the index down to 10280/10250 which could result in Buying opportunities if that support holds.

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

Only below 10000, medium term downtrend will start!

Note : Sensex also is still in the range 33650-32800. Best signals will come on a breakout on either side. Till then only short term trades possible.

Bank Nifty is still at almost the same level. It did take support at lower levels last week. But, has the downtrend ended?

                                           

This week,

BUY trades possible till 25325 holds.

Upside momentum likely only above 25700.

SHORT SELL trades possible only below 25150.

Downside momentum likely only below 24800.

Early in the week a dip towards 25350 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 ON DIPS still look possible)

Auto - (Positive till  11300 holds)

(For now, BUY trades in individual stocks ON DIPS still look possible)

NEUTRAL –

IT – (Still in a range! 11350-10960.)

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

Metal – (Now In a range. 3750-3610. Current Best opportunities on a breakout)

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

Energy - (Still In a range. 14490-13860)

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

Pharma (downtrend momentum below 8980) (short term positive above 9360)

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

Realty (Short term Negative below 316) (Short term positive only above 327)

(For now, Short term SELL trades possible)

Personal Notes:

Till news and events are out of the way, patience and waiting for the right signal will be the key.

Always better for the market to give a direction, rather than assume that market will go up or down!

Volatility index is again breaking out of its range (14-10)

Early in the week, volatility may rise a lot due to new based events!

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.