Market Direction view - 19/2/18 to 23/02/18

A Full trading week ahead.

Result season nearing its end.

Scroll down to the end for results to be announced this week.

Nifty50 - Important supports near 10400, below which a big downside can open up!

If 10400 holds, we could have a small range develop in the short term 10400-10600.

Below 10400, fresh SHORT SELL signals available.

In case a range develops, BUY & SHORT SELL trades at the extreme ends of the range could develop.

Similar moves observed in Sensex as well.

Fresh negative signals below 33700.

If this level holds, a short term range 33700-34550 could be possible.

Nifty Bank - At extremely crucial support near 25100. Below 24800 another major down move can come.

If these supports hold, we could have a range develop in the short term 25100-25800.

Below 25100, fresh SHORT SELL signals available.

In case a range develops, BUY & SHORT SELL trades at the extreme ends of the range could develop.

Other Sectoral Indices –

Metal – (In a downtrend, more downside below 3950)

(If the support holds, a small range likely to develop 4125-3950)

(In the short term a rally is possible)

(For now, SHORT SELL trades in individual stocks below 3950 possible)

(If the support holds, short term BUY trades in individual stocks open up!)

IT – (In a downtrend, caught in a range 12750-12350)

(For now, SHORT SELL trades in individual stocks below 12350 possible)

(If the support holds, short term BUY trades in individual stocks open up!)

Auto - (In a downtrend, below 11000 even more downside possible)

(In the short term, a very small rally possible)

(For now, SHORT SELL trades on rally in individual stocks possible)

FMCG - (In a downtrend, below 26400 even more downside possible)

(In the short term, a small rally possible)

(For now, BUY trades in individual stocks possible if 26400 holds)

(Otherwise, SHORT SELL trades in individual stocks again open up!)

Energy - (If 13750 holds, can move back in the Range 14675-13870)

(For now, BUY trades in individual stocks possible if 13750 holds)

(Otherwise, SHORT SELL trades in individual stocks again open up!)

Pharma - (In a downtrend, can go down till 8950)

(For now, SHORT SELL trades on rally in individual stocks possible)

Realty - (In a downtrend, more downside below 320)

(For now, BUY trades in individual stocks possible only above 329)

(Overall, looks like a SHORT SELL in individual stocks below 320)

Personal Notes:

After a hard fall after the budget and due to global trends, our market is trying to decide which way to go.

Till the decision is made, which will be visible for us on our charts, trades are likely to be short term and volumes low.

Volatility range has expanded from 10-14 to (14-19) last week.

Likely to go up initially in the week.

Will mostly likely come down later in the week.

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At the end of the week, we do a review of this analysis.

You can Click here to read it.

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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.

Results this week

Monday, February 19, 2018
	Castrol India (CAST)
	Kamat Hotels India Ltd (KAMT)
Tuesday, February 20, 2018
	Ambuja Cements (ABUJ)
Wednesday, February 21, 2018
	EMCO Ltd (EMCO)
	Stovec Ind (STOV)
Thursday, February 22, 2018
	Tantia Constructions Ltd (TANC)