I have drawn here trend line that goes as far as 1993. Nifty now is trading very close to the upper level of that line. Past 2 times when Nifty came touched this line it faced a decent correction. This trend line also gave correct signal to get out before 2007-08 bear rally. Nifty Going above this trend line seems highly unlikely. It is wise to get out before...
SAIL has corrected form highs & now is near support level of trend line that is almost 1.5 year old & has taken support 4 times near it. Metal Index looks good as well, and SAIL is good risk-reward buy.
Banknifty has been going up along with resistance line which is there since 2010 & every time it touched that line it corrected at least 6000-7000 points, will it happen this time as well i don't know but one thing for sure don't expect BN to outperform from here & expect it to cross 24000 mark. In fact nearer highs to 24k book profits in bank stocks & short the...
As can be seen from the chart that nifty has been taking trend line support since February. This trend line is short term support for nifty if that is taken out tomorrow you can have deeper correction. Short put positions too got covered today, which indicates more weakness is coming.
Looking at the ratio chart of reliance to mindtree it seems that reliance is picking momentum against mindtree. Two stocks are not correlated so it may not be a better idea to pair trade, but idea here is to buy under performer which is picking momentum against out performer.
It seems that in concor distribution is going on at higher levels. Yellow area marked as congestion zone marks a cluster bubble building once price breaks below it you can see strong sell-off in CONCOR. Not to mention momentum has weakened too.
The stock of titan has been trading flat for some time now taking support near 50-day EMA, but momentum is weakening on daily chart. ROC has entered negative territory and is below average. Shorting at higher levels offers good risk-reward.
The stock of Maruti Suzuki has gone parabolic, as can be seen from trend lines slopes of which has been steepening with every move. Yesterday it has broken from it's trend line support plus momentum is also weakening as can be seen from Squeeze Momentum Oscillator.
As can be seen from the weekly chart of Arvind, momentum in the stock has turned lower and entered into negative territory. It is often a warning sign that stock might change it's current trend. The logic behind this idea is to trade against the trend when it gets old and momentum starts weakening. In my last article i mentioned similar logic on metal index, and...
Overall Metal sector looks ripe for big price correction at this stage. i have found Tata Steel to be more perfect for short as momentum continues to weaken and stock is going sideways on the way up, same price action like crude oil before it dropped from $53 to $47.
On daily charts 25 day ROC of SPX has entered into negative territory. Which indicates that momentum in the short term is weak which will drag SPX down.
My Take - At this point it is very dangerous to carry long positions in the market as much waited correction is highly probable.
UBL slipped below it's long term trend line support since 2012 on intraday basis on bad news but managed to close above it. This is also supported buy close above daily supertrend buy support level.
Strategy - Buy with stop of 760 on closing basis.
IDFC has broken down trend line, going back to late October 2016. Fundamentally as well I think stock is great value buy as most India growth story stocks have gone up this is the only one which has not performed compared to others. I think stock can go till 60 very soon.
Sentimental RSI has also turned positive on daily chart suggesting new uptrend is starting.
One thing which really helps to make a trade against the trend is momentum divergence, as can be seen in case of USDINR chart though pair has dropped, clear divergence can be seen in momentum as ROC has sustained above it's 20 period EMA. Which indicates that downtrend momentum is getting weak & pair can move back up.
Mindtree is around trendline support which is around 460 It's 25-day ROC is also holding above it's
20 day EMA, which is indication that momentum may pick up in short term & stock can reach to
483 & 500 levels.