Market Direction View - 2/4/18 to 6/4/18

A full trading week ahead.

Nifty50 – Is still at its crucial medium term support.

Is the 2 year old uptrend finally under serious threat?

This week,

SHORT SELL signals will again appear below 9930.

Very short term BUY signals will appear above 10175.

10400-10600 is still a decent resistance on the way up.

Sensex is slightly more positive than Nifty!

SHORT SELL signals will again appear below 33000.

Very short term BUY signals as long as the index stays above 33000.

33700-34200 is now a decent resistance on the way up.

Nifty Bank – is still at a critical medium term support.

This week,

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

Very short term BUY signals will appear as long as 23950 holds.

24500-24750 still continue to act as a decent resistance.

         

Other Sectoral Indices –

Metal – (In a downtrend) (More downside can be avoided only above 3550)

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

IT – (In a range 12545-13118) (At the bottom 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) (10900-11100 continue to act as a decent resistance!)

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

FMCG - (Neutral) (Positive above 26200, Negative below 25500)

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

Energy - (In a Downtrend) (Downside can be avoided if 13000 holds)

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

Pharma - (In a downtrend) (More downside can be avoided only above 8625)

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

Realty - (In a downtrend) (Downside can be avoided if 300 holds)

(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!

At crucial market levels there will always be hopeful bargain buying.

Whether that buying assists the market in finding medium term support is something to look for!

For now, Short term BUY and SHORT SELL TRADES look possible, until the market decides a direction.

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

Your guess is as good as mine!

Volatility continues to remains 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.