Archives : Deepawali Special - 02/11/2018

DEEPAWALI SPECIAL.

 

HAPPY DEEPAWALI & A PROSPEROUS NEW YEAR - 02/11/2018.

 

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

 

CHALLENGING YEAR AHEAD.

 

The current year has taken a very heavy toll on the psyche of the market participants as the Market undertook a Roller Coaster ride. Traders as well as investors lost heavily as the Market swung in opposite directions. The year ahead seems to be as challenging the one gone by, if not less. Lots of macro and micro factors are playing in favour of the Bears, like the Weakening Rupee, Rising Crude, Dwindling NBFC sector, uninterested and unwilling Government and its set of clueless Bureaucrats. One can expect the market to continue with its Correction in the first quarter of the next year and possibly rally post the declaration of Election results. The Nifty has already corrected by around 1700 points and is now witnessing a bounce back. Long term Trend remains negative and every bounce will be used to create fresh short positions.

 

 


DEEPAWALI SPECIAL.

 

HAPPY DEEPAWALI & A PROSPEROUS NEW YEAR - 02/11/2018.

 

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

 

CHALLENGING YEAR AHEAD.

 

The current year has taken a very heavy toll on the psyche of the market participants as the Market undertook a Roller Coaster ride. Traders as well as investors lost heavily as the Market swung in opposite directions. The year ahead seems to be as challenging the one gone by, if not less. Lots of macro and micro factors are playing in favour of the Bears, like the Weakening Rupee, Rising Crude, Dwindling NBFC sector, uninterested and unwilling Government and its set of clueless Bureaucrats. One can expect the market to continue with its Correction in the first quarter of the next year and possibly rally post the declaration of Election results. The Nifty has already corrected by around 1700 points and is now witnessing a bounce back. Long term Trend remains negative and every bounce will be used to create fresh short positions.

                   

9371-9293 – CONFLUENCE SUPPORT ZONE.

 

On the down side, once the current bottom of 10004 is taken out, one can expect the Confluence Support zone between 9371-9293 to be tested.

 

MAJOR CORRECTIVE LEVELS.

 

Currently our Market is in a Bear phase. We had similar 5 Bear phases in the last 11 years. Once the Nifty went below 50 WeeksMA, doors were thrown open to test the 200 WeeksMA which is at 9123. In the last 4 Bear phases, Nifty has invariably taken Support at the 200 WeeksMA and bounced back from there. But in 2008, Nifty breached the 200 WeeksMA and took support at the 100 MonthsMA. So in most likely scenario, Nifty will end its Correction at the 200 WeeksMA (9123). But in case of severe bearishness, Nifty can break the above level and then possibly take Support at the 100 MonthsMA which is at 7504.


Nifty Weekly MA
"

10754-10843 – BEARISH GAP AS RESISTANCE.


The fall in the Indices has been very sharp to say the least. In two months flat, Nifty has lost more than 1700 points. The decline has been so severe that the indices on daily as well as weekly timeframe went into oversold territory and as a result a bounce-back ensued. Strong Resistance will be seen at the Bearish Gap between 35820-35911 for the Sensex as well as 10754-10843 for the Nifty. Trend Reversal level for the Sensex is at 36813 and Nifty 11089.

 

YEARLY INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

8506

9123

9875

10553

11145

11760

12389

Sensex

27590

29803

32483

35011

36938

38989

41788

 

DEEPAWALI RECOMMENDATIONS:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy Astrazenca

1678

1448

2062

2493

Buy PVR

1394

1134

1823

2293

Buy StrTech

374

317

488

623

 

WEEKLY ARTICLE – 02/11/2018.

 

BULLISH KICKING PATTERN.

 

The Week gone by saw the Bulls comeback with a vengeance. Friday saw the Nifty completing a Bullish Kicking pattern whereas Sensex completed a Bullish Separating Lines formation.

 

Both the indices are likely to test the strong Resistance in the form of Bearish Gap between Sensex 35820-35911 and Nifty 10754-10843 which is accompanied by the 200dma (Sensex 35408 and Nifty 10765).

 

Correction levels are placed at Sensex 35468-36140-36813 and Nifty 10675-10882-11089. Trend will reverse above Sensex 36813 and Nifty 11089.

 

Both the indices closed above 20dma, thus the short term trend has turned positive.

 

weekly INDEX LEVELS:

 

 

S3

S2

S1

CLOSE

R1

R2

R3

Nifty

10108

10329

10441

10553

10647

10754

10866

Sensex

33974

34300

34679

35011

35408

35820

36261

 

RECOMMENDATIONS FOR THE WEEK:

 

STOCK

CMP

SL

Tgt-1

Tgt-2

Buy MRF

66480

65589

67889

69339

Buy Nestle

10229

10084

10450

10687

Buy M&M Fin

430

422

448

457

 

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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