Market Direction View - 26/2/18 to 1/3/18

A 4 day week. Market holiday on Friday on account of Holi.

Result season nearing its end.

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

Nifty50 - Important support near 10400 was held last week. Will we see an up move?

This week,

If Nifty50 manages to move above 10550, we could get BUY signals.

Until 10400 holds, sharp downside is probably protected for now.

We could even have a small range develop in the short term 10400-10600, a possibility which we had felt last week also.

Similar moves observed in Sensex as well.

Fresh BUY signals above 34250.

Downside protected for the moment until 33700 holds.

A short term range 33700-34550 could also be possible.

Nifty Bank - Crucial support near 25100 was held last week.

This week,

We could get BUY signals above Bank Nifty levels of 25350.

Until 25100 is held, downside looks protected for now!

Resumption of the earlier uptrend likely only above Bank Nifty levels of 25800.

Other Sectoral Indices –

Metal – (In a range 3850-4050, close to the upper end of the range)

(For now, After range breakout, BUY trades in individual stocks possible)

IT – (In a range 12545-13118, in the middle of the range)

(For now, until the range breaks, short term BUY as well as SHORT SELL trades in individual stocks possible)

Auto - (In a downtrend, below 10890 even more downside possible)

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

FMCG - (Downtrend reversing? We will get a better answer above 26750)

(For now, BUY trades in individual stocks possible above 26750)

Energy - (In a range 13750-14475, at the lower end of the range)

(For now, until the range breaks, short term BUY as well as SHORT SELL trades in individual stocks possible)

Pharma - (In a downtrend, currently in a range 8750-9190)

(For now, until the range breaks, short term BUY as well as SHORT SELL trades in individual stocks possible)

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

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

Personal Notes:

A pause, after the recent down move looks a possibility.

Will it re-start the earlier uptrend? We will find that out this week.

There is a lot of volatility in the market right now.

Not the time for carefree trading! Follow the plans!!

Volatility has come down to the lower end of its current range! (14-19)

A range break on the down side most likely will be accompanied by a market rally!

Will be interesting to watch how volatility behaves this 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.

We use TECHNICAL ANALYSIS for our studies.

Disclaimer – Please do your own analysis before taking trades.

Result announcements this week

Tuesday, February 27, 2018
	Mandhana Industries (MAND)
	Standard Chartered DRC (STNCy)
Wednesday, February 28, 2018
	Sarda Energy Minerals Ltd (SAEM)