Archives : DEEPAWALI SPECIAL - 25/10/2016.

DEEPAWALI SPECIAL.

HAPPY DEEPAWALI & A PROSPEROUS NEW YEAR - 25/10/2016.

Wishing each one of you a very Happy Deepawali and a Prosperous New Year. May all have a super successful trading year.

SHORT TERM PAIN, LONG TERM GAIN.

It is only natural to expect the market to gather some fuel before restarting the upward journey. The current pause in the rally is a necessity as Sensex has gained 6583 points and Nifty 2143 points in a short span of seven months. Both the indices are in dire need of both price as well as time Correction. Even a sharp price Correction is unlikely to breach the strong support level of Sensex 25911 and Nifty 7927. As soon as the Consolidation/Correction gets completed, one can expect the previous life high levels to be tested and even be surpassed.

Please note there will not be article dated 28th October 2016. Next Update will be on 4th November 2016.


DEEPAWALI SPECIAL.

HAPPY DEEPAWALI & A PROSPEROUS NEW YEAR - 25/10/2016.

Wishing each one of you a very Happy Deepawali and a Prosperous New Year. May all have a super successful trading year. 

SHORT TERM PAIN, LONG TERM GAIN.

It is only natural to expect the market to gather some fuel before restarting the upward journey. The current pause in the rally is a necessity as Sensex has gained 6583 points and Nifty 2143 points in a short span of seven months. Both the indices are in dire need of both price as well as time Correction. Even a sharp price Correction is unlikely to breach the strong support level of Sensex 25911 and Nifty 7927. As soon as the Consolidation/Correction gets completed, one can expect the previous life high levels to be tested and even be surpassed.

CORRECTION LEVELS.

Nifty Correction Levels

The current phase in market can be termed as Correction in shorter timeframe. If the Correction gets extended i.e. if it breaches the recent lows of Sensex 27488 and Nifty 8506, then we need to consider the Corrective levels of the entire rally i.e. from Sensex 22494 to 29077 and Nifty from 6825-8968. The relevant Correction levels are placed at Sensex 26562-25786-25009 and Nifty 8150-7897-7644.

PATTERN ANALYSIS.

Long Term Timeframe:

In the long term timeframe, both Sensex and Nifty had completed a Bullish Cup and Handle formation two years back and the target as per that formation remains intact at Sensex 34715 and Nifty 10462. Hence there remains some pain in the short term, but the long term gains will remain intact.

 

Nifty Pattern Monthly

 

For the year ahead, Sensex will face Resistance at 30039-32169-34715 and Support will be at 26314-24523-22494.

For the Year ahead, Nifty will face Resistance at 9430-9834-10462 and Support will be at 8063-7405-6825.

YEARLY INDEX LEVELS:

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

6825

7405

8063

8691

9430

9834

10462

Sensex

22494

24523

26314

28091

30039

32169

34715

DEEPAWALI RECOMMENDATIONS:

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy MCX

1274

1040

1663

2078

Buy TataChem

566

488

709

863

Buy Timken

592

510

730

889

WATCH OUT FOR:

Timken Annual

TATA CHEM Annual

Tata Comm Annual

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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