Market Direction View - 16/4/18 to 20/4/18

A full trading week ahead.

Scroll down to the end for the results calendar this week.

Nifty50 – continues to respect its crucial medium term support.

And looks like it is slowly building on the positive price movement.

But, will it continue this week also?

This week,

Short term BUY signals continue to till Nifty stays above 10400-10350.

All the way till 10600 is still a decent resistance on the way up.

SHORT SELL signals will again appear only below 10150.

Or

If the Index fails to cross its resistance and starts moving down.

Sensex is crossing resistances much more easily.

Short term BUY signals continue till Sensex stays above 34000-33750.

A minor resistance remains near 34600.

SHORT SELL signals will again appear only below 33100.

Nifty Bank – also continues to respect its critical medium term support.

This week,

BUY signals will appear above 25200.

SHORT SELL signals will again appear below Bank Nifty levels of 23700.

Or

If the Index fails to cross its resistance and starts moving down.

  

Other Sectoral Indices –

Metal – (In a downtrend) (Crucial supports near 3550 holding for now)

(For now, short term BUY trades in individual stocks possible)

IT – (Positive range break above 13118)

(For now, until the range break holds, short term BUY trades in individual stocks possible)

Auto - (In a Uptrend) (Positive till 11200 holds)

(For now, BUY trades on dips in individual stocks possible)

FMCG - (In a range 27250-26450) (Near the high of the range)

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

Energy - (Neutral) (Downside Crucial supports near 13000 holding for now)

(For now, until support holds, short term BUY as well as SHORT SELL trades in individual stocks possible)

Pharma - (Downtrend reversing?) (Needs to cross the 8875-9000 resistance to confirm change in trend)

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

Realty - (In a downtrend) (Crucial supports near 290 holding for now)

(For now, until support holds, short term BUY as well as SHORT SELL trades in individual stocks possible)

Personal Notes:

It is still a SELL ON RISE market!

But, most medium term supports are holding.

So,

For now, more Short term BUY trades look possible.

Keep eyes open for short term SHORT SELL opportunities also.

This is still a trader's market.

Does not look like running away either UP or Down!

Is a range developing?

Is it the right time to BUY for the medium/long term!

Your guess is as good as mine!

Volatility still at the lower end of its current range! (14-19)

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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.

Results calendar for this week

Monday, April 16, 2018
	Development Credit Bank (DCBA)
	Reliance Industries (RELI)
Wednesday, April 18, 2018
	ACC (ACC)
	MindTree (MINT)
Thursday, April 19, 2018
	Cyient Ltd-B (CYIE)
	IndusInd Bank (INBK)
	Tata Consultancy (TCS)
Saturday, April 21, 2018
	HDFC Bank (HDBK)