Market Direction View - 2/7/2018 to 6/7/2018

A full trading week ahead.

Nifty50 – is losing upward momentum. But on the downside lot of supports still remain valid. So immediate fast downward move also looks difficult!

Looks like a large range (10900-10300) has developed.

This week,

Short term BUY possible if Nifty goes above 10830.

Short term SHORT SELL possible if Nifty goes below 10600.

Major trend change likely if Nifty goes below 10200.

Similar signs visible in Sensex.

Short term BUY possible if Sensex goes above 35800.

Short term SHORT SELL possible if Sensex goes below 34700.

Major trend change likely if Sensex goes below 33400.

Nifty Bank – is also losing its upward momentum.

This week,

Very Short term BUY possible if Nifty Bank goes above 26450. Proper up move likely to begin only above 27000.  Till then only very short term trades possible.

Very Short term SHORT SELL possible if Nifty Bank goes below 26250. Proper down move likely to begin only below 25800. Till then only very short term trades possible.

  

Other Sectoral Indices –

Auto - (Uptrend under threat!) (Needs to go above 11000 to save the uptrend)

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

Energy - (Uptrend Under threat!) (Crucial supports near 13200 holding for now. Proper upmove starts again only above 13900)

(For now SHORT SELL trades in individual stocks possible if support breaks )

FMCG - (Uptrend starting) (Currently in a range 29000-28250)

(For now, BUY trades in individual stocks possible after range break)

IT – (UpTrend) (Currently in a range 14225-13775)

(For now, best trades in individual stocks possible only after range break)

Metal – (Downtrend) (No trend reversal until 3600 gets crossed!)

(For now, short term BUY trades in individual stocks possible if 3485 gets crossed. Otherwise SHORT SELL trades after every rally in individual stocks)

Pharma - (Downtrend REVERSING?) (Needs to cross 9381 for the current upmove to continue. Below 8875 level downtrend resumes)

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

Realty - (Downtrend) (Needs to cross 290 level to confirm change in trend)

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

Personal Notes:

Market movement gives us a lot of indications when it changes!

As of now the market is giving indications that a large range has formed!

Resistances are becoming difficult to cross.

But, most medium term supports are also holding.

So,

For now, look for Short term BUY trade possibilities near support areas.

Keep eyes open for short term SHORT SELL opportunities near resistances.

This continues to be a trader's market.

Does not look like running away either UP or Down!

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

Not for me!

The Volatility range continues (10-14)

Generally, higher volatility tends to restrict upmoves.

=========================================

At the end of the week, we will also do a review of this analysis.

You can Click here to read it.

=========================================

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.