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!

Monday, 12 March 2018

Stock Market Direction View - 12/3/18 to 16/3/18



A full trading week ahead.


Nifty50 – finally broke down from the crucial 10400 support last week.
Currently at a very very important make or break level!

This week,

Big downside and even more SHORT SELL signals appear below 10100.

10300-10400 is now a decent resistance on the way up.
9950 is a very important support which needs to hold if a large down move is to stop!



Similar moves observed in Sensex as well.
Big downside and even more SHORT SELL signals appear below 32900.
33500-34000 is now a decent resistance on the way up.
32300 is a very important support which needs to hold if a large down move is to stop!





Nifty Bank – is back in its earlier range 23800 – 25000. Currently near the upper end of the range.

This week,

We could get more SHORT SELL signals below Bank Nifty levels of 23800.

If the index remains in the above mentioned range, both BUY and SHORT SELL trades for the short term possible.
         




Other Sectoral Indices –

Metal – (In a downtrend) (Can even test levels of 3500!)
(For now, after a rally, 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 10850)
(For now, BUY trades in individual stocks possible above 11155)


FMCG - (Downtrend reversal failing? Near strong support zone 25900-25500)
(For now, very short term BUY as well as SHORT SELL trades in individual stocks possible)


Energy - (Downtrend reversal failing? Near strong support zone 13600-13000)
(For now, until the range breaks, short term BUY as well as SHORT SELL trades in individual stocks possible)


Pharma - (In a downtrend)
(For now, after a rally, SHORT SELL trades in individual stocks possible)


Realty - (In a downtrend)
(For now, after a rally, SHORT SELL trades in individual stocks possible)






Personal Notes:
What was true last week, remains true this week as well!
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 is at the lower end of its current range! (14-19)
A rise in volatility will continue to be an additional headache for the bulls!


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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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