This blog aims to serve as a GUIDE and MOTIVATION to our LEARNERS.
The purpose of this blog is to create awareness amongst all traders that it is very important to LEARN TO HAVE TRADING PLAN!

Saturday, 3 March 2018

Market Direction View - 5/3/18 to 9/3/18


A full trading week ahead.


Nifty50 – continues to hold the 10400 support but is not moving up as expected. The 10500-10600 area has now become a decent resistance!

This week,

If Nifty50 manages to move above the 10500-10600 area, we could get BUY signals.

Until 10400 holds, sharp downside is still protected for now.
Below 10350, a large downside move becomes a possibility!


Similar moves observed in Sensex as well.
34050-34500 has become a decent resistance!
Very short term BUY signals above 34050.
But, trend change BUY signals only above 34550.
Downside protected for the moment until 33700 holds.
Below 33600, a large downside move becomes a possibility!




Nifty Bank – looks like it is not willing to go up!
Not surprising with the kind of news we keep getting with respect to the banking sector!

This week,

We could get SHORT SELL signals near Bank Nifty levels of 25100-25200.

Until 25350 gets crossed on the up side, a healthy up move looks difficult for now!
A larger downside move possible below 24750!
         



Other Sectoral Indices –

Metal – (In a range 3850-4050)
(For now, until the range breaks, short term BUY as well as SHORT SELL 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 - (Downtrend reversing?  Positive reversal attempt fails below 10900)
(For now, BUY trades in individual stocks possible above 11155)

FMCG - (Downtrend reversal failing? Currently in a range 26220-26620)
(For now, until the range breaks, short term BUY as well as SHORT SELL trades in individual stocks possible)

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, currently caught in a range 320-335)
(For now, until the range breaks, short term BUY as well as SHORT SELL trades in individual stocks possible)





Personal Notes:

Market trying very hard to move up is never a good sign!
Definitely not the time to BUY for the medium/long term!
Volatility in the market continues to give mixed signals.
Follow the plans!!
Till a direction is decided, trades are likely to remain short term!


Volatility has come down to the lower end of its current range! (14-19)
A range break on the down side did not happen last week.
A rise in volatility will be an additional headache for the bulls!
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.
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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.

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