Weekly Digest

Making an informed decisions in trading or investing is vital to ones success and in the process financial freedom can be achieved. One needs to have a competitive edge in this volatile markets to be on the right side. An appropriate trade setups, money management and trade management is also vital.

To know and make informed trading decisions check out our weekly digest, which can assist you in knowing key trends of the financial markets to catch in an opportunity via simple applied technical concepts for favorable trade setups.

CNX NIFTY

NIFTY Daily Chart

·         NIFTY has broken below the up trending channel after almost 3 months and showing signs of deteriorating trend.

·         The NIFTY has broken below 21 – EMA (6234) and has touched 50 – EMA (6171) and has bounced back to close at 6211.

·         In short, Case 1: NIFTY below 6130 can witness broad based selling. Case 2: Contra above 6265 buying can be witnessed.
·         Aggressive traders can sell at CMP with tight stop loss of 6240 on closing basis for targets of 6130 and lower up to 5980 below 5845 can be tested.   

SUPPORT
S1	6190
S2	6130
S3	6080
S4	5972

RESISTANCE
R1	6234
R2	6267
R3	6295
R4	6345

Bank NIFTY

Chart 1: Bank NIFTY Daily chart

Chart 2: Bank NIFTY Daily Fibonacci Chart

·         Bank NIFTY has been in a corrective pattern and has tested the crucial point of 11052 (200 EMA)

·         The index is below 21 and 50 EMA (11350 and 11190). It’s in a tight bound but a trigger below 11000 for the index would see fresh selling confirming a descending triangle for targets of 10650/10400/10000. The min. pattern targets, if initiated can be 9850.

·         The Key resistance for the index: 11320/1450. Thus we recommend fresh longs can only be initiated above 11500 for higher targets 11800 and 12200.   

CNX Auto

CNX Auto Daily Chart

·         CNX Auto Index has opened gap down on the final trading session last week and has broken below key support of 5200 and below its 21 EMA (5241) and has tested its 50 EMA (5141)

·         The indices have formed a clear lower top formation and momentum indicators are showing bearish signs for short term, Although indices has broken out of its all time highs of 5000.

·         Further weakness can be seen below 5141 towards 5000 and 4870 – 90.

·         The stock specific action can be seen in the index. So it’s advisable to trade selectively.

MM

MM Daily Chart

·         MM has clearly broken out of a 3 month up trending channel

·         The counter has formed a double top formation

·         RSI has formed a bearish H & S pattern and has broken below it

·         The stock has broken below its 21 and 50 EMA (944 ad 928) respectively and is near its 200 EMA (900), which can act as a support

·         Thus, we recommend to short the counter on rise up to 923 – 928 with stop loss of 945 for targets of 897/ 855/834

CNX Reality

Chart 1: CNX Reality Daily Chart

Chart 2: CNX Reality Daily Chart

·         CNX Reality has formed a bullish H & S pattern and is trading above its 21 and 50 EMA consistently from past couple of weeks as shown in Chart 1

·         The indices has formed Ascending triangle in another view and has broken above 180 odd levels as show in Chart 2

·         The indices has broken above its 1 year down trend line and showing signs of reviving its uptrend 

·         The pattern targets for the index in Chart 1 :  199 and in Chart 2: 212 and pattern would below 176

·         The key barrier is 191, which is 200 EMA above further bullishness will be seen.

  CNX Infra

                                

Chart 1: CNX Infra Daily Chart

Chart 2: CNX Infra Daily Chart

·         CNX Infra has broken below a descending triangle signaling confirmation of bearishness trend as showing in Chart 1.

·         The RSI has also formed a bearish H & S pattern and the range shift has taken place as showing in Chart 1.

·         A clear lower top formation along with the indices trading below 21 and 50 EMA’s is a sign of bearishness as shown in Chart 2.

·         The pattern target for the index is around 2200

·         We recommend long traders to avoid infra stocks until the indices decisively crosses > 2460 – 2480 on closing basis

Larsen & Turbo

                                        

Chart 3: LT Daily Chart

·         Short traders can short particularly LT on rise, which has formed similar descending triangle pattern up to 1050 – 60 (CMP 1012) with a stop loss of 1080 for targets of 990 and 945 (200 EMA) odd levels as shown in Chart 3.

·         The stock has further broken below 21 and 50 EMA (1057 and 1016.40) respectively

·         At current prices (1012) also aggressive traders can short with tight stop loss of 1032 for similar targets mentioned above.

Siemens

Chart 1: Siemens Daily Chart

Chart 2: Siemens Daily Chart

·         Siemens has broken below a rising wedge pattern (660), which is of very bearish in nature

·         It’s also trading 21 EMA (640) and showed signs of distribution around 650 - 670 odd levels

·         We recommend trend followers to short the counter below 620 for targets of 592 and 565 with stop loss of 640 – 650
·         The key supports for the counter are: 627/592/563 and key resistance for the stock are: 640/650/670. We recommend acting accordingly and decisive longs can only be initiated above 650 - 660. 

 Raju V Angadi
 Equity Research Analyst

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Disclaimer: This is just an view based on the research of individual for educational purpose. So kindly trade along with the consultation of your financial adviser, market trends, price action and own risk appetite considered while investing or trading in markets