Archives : DEEPAWALI SPECIAL - 06/11/2015.

DEEPAWALI SPECIAL.

HAPPY DEEPAWALI & A BEARISH NEW YEAR - 06/11/2015.

Wishing all my readers a very Happy Deepawali and a Prosperous New Year. May you all have a super successful trading year ahead. 

BE PREPARED FOR MORE PAIN.

After registering a gain of almost 3000 points on the Nifty in nearly two years, it was time the market consolidated and digest such huge gains. It is natural for the market to spend time in correcting the previous rally and that is what the market is doing currently. Thus the fall from 9119 on Nifty is a consolidation in the long term timeframe. But in the short and intermediate timeframe charts, the trend remains bearish. The market in the near term is seeking lower levels with targets of Sensex 24486 - 22552 and Nifty 7425 – 6741; before resuming the long term uptrend. Hence traders with a short to medium term timeframe must use upward moves to create short positions.

There will not be any article update for next week. New update will be on 20/11/2015.


DEEPAWALI SPECIAL.

HAPPY DEEPAWALI & A BEARISH NEW YEAR - 06/11/2015.

Wishing all my readers a very Happy Deepawali and a Prosperous New Year. May you all have a super successful trading year ahead. 

BE PREPARED FOR MORE PAIN.

After registering a gain of almost 3000 points on the Nifty in nearly two years, it was time the market consolidated and digest such huge gains. It is natural for the market to spend time in correcting the previous rally and that is what the market is doing currently. Thus the fall from 9119 on Nifty is a consolidation in the long term timeframe. But in the short and intermediate timeframe charts, the trend remains bearish. The market in the near term is seeking lower levels with targets of Sensex 24486 - 22552 and Nifty 7425 – 6741; before resuming the long term uptrend. Hence traders with a short to medium term timeframe must use upward moves to create short positions.

CORRECTION LEVELS.

Market is undergoing a correction in the medium to long term timeframe of the rise from Sensex 15135 to 30024 and Nifty 4531 to 9119. The relevant Correction levels are placed at Sensex 24337-22580-20823 and Nifty 7366-6825-6283.

PATTERN ANALYSIS.

Long Term Timeframe:

In the long term timeframe, both Sensex and Nifty had completed a Bullish Cup and Handle formation last year and the target as per that formation remains intact at Sensex 34715 and Nifty 10462.

Medium term Timeframe:

In the intermediate and shorter term timeframe, both the indices have formed two Bearish Head and Shoulders pattern. The targets as per short term Head and Shoulders remains at Sensex 24486 and Nifty 7425 and for higher degree Head and Shoulders the target is Sensex 22522 and Nifty 6741. These targets will be achieved as long as Sensex remains below the pattern failure point of 28578 and Nifty below 8654. Thus pattern analysis indicates targets for the Bearish patterns to be achieved first before reaching long term higher targets.

Nifty Weekly H&S

For the year ahead, Sensex will face Resistance at 29094-32323-34715 and Support will be at 24833-23008-22277.

For the Year ahead, Nifty will face Resistance at 8844-9769-10462 and Support will be at 7539-7118-6575.

YEARLY INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

6575

7118

7539

7954

8844

9769

10462

Sensex

22277

23008

24833

26265

29094

32323

34715

BUY RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy AllCargo

329

263

451

579

Buy TVSMotors

281

224

373

481

Buy U-Flex

173

132

262

357

SELL RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Sell EicherMot

16693

19080

12630

8700

Sell PageInd

13473

15075

10680

7899

Sell StridesArc

1241

1374

1018

803

DEEPAWALI RECOMMENDATIONS:

UFlex

EicherMotor

Disclaimer : The recommendations made herein do not constitute an offer to sell or a solicitation to buy any of the securities mentioned. No representations can be made that the recommendations contained herein will be profitable or that they will not result in losses. Readers using the information contained herein are solely responsible for their actions. Information is obtained from sources deemed to be reliable but is not guaranteed as to accuracy and completeness.

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