Monthly Archives: November 2017

Doji Family is ruling party this week!

Nifty had been in strict profit booking mood and bulls were trying to find out a way to get out of the trap and then Moody’s Re-rating on India came as a surprise on the street! Markets took a U-Turn on such news and we saw a initiation to a new short term rally. 10345 which was a strong resistance level is now acting as a “battle field” for Bulls and bears since last 4 sessions.

Interestingly we have got “4 Consecutive Doji’s” on Nifty daily chart which is signifying a a perfect Demand And Supply scenario. Tomorrow could be an interesting day which could bring out one winner for short term. Applying Elliot Wave on the chart, it seems we are into Wave 5 of the Minor trend which could end around 10600 which was also target activated on Inverted H&S breakout at 9000 making target more feasible. For near term support, 10150 could act as a stop loss for all fresh longs. Even taking support of Derivative setup as we get near to Expiry, 10300 has a strong writing on the PUT side which means now that level is difficult  to close below in next week.

So now as Doji’s are crowded on the chart, tomorrow could be decider day or to say for me it will be a confirmation day for a long calls. Be stock specific on the trades and not on the index. Keep a trailing SL of 10150 for all existing longs and for fresh longs keep 10270 with tgts of 10480/10600 in coming weeks.

You feel enough for Banking Stocks?

Banking stocks are on a Dream run! PSU banks which were neglected by most of the traders gave whooping returns overnight on the news of Bank recapitalization by our Finance minister. After such a quick returns, you would be feeling its enough for Banking Stocks?… “I Believe its just the new beginning

Fundamentally many banking stocks are still reporting higher NPA but i think they are cleaning up its past mistakes. And as we know, market discounts future expectations, which is the reason supporting current rally on bank index. For the short term trend lets catch up with daily charts of Nifty bank where we have seen some breakout from consolidation pattern. As we can notice in the chart, Nifty bank index has moved out of “Rectangular Formation” which was intact since late June’17. During this formation, it has triggered a start of Wave 3 of a smaller degree of trend which has now support at 24800 with minimum tgts of 26000/26320  on the upside. Indicators are also moving with a strong strength for a new high. Now for a quarterly view i feel 24300 is the maximum downside where we have a gap unfilled and 20 day Moving average support.

So view: Hold existing longs on Nifty bank with tgts of 26000/26320 or buy fresh near to 25000 in near future with stop loss of 24300.