CNX METAL and INFRA indices have outperformed the broader indices (NIFTY) clearly almost by 10+% now 3120 and 3150 respectively from 12th May 2014 till date. As discussed in our previous article, "Price discounts everything except the acts of god". Even the simplest of basic technical analysis along with price confirmation and understanding of supply demand indicators can assist one to make wise investing and trading decisions.
Although Indices have moved up in the range of 12 - 16% till date, they cant be actively traded. We will list some of the stocks which were recommended to our paid subscribers and their performance. The stocks in the respective sectors have given a whopping returns of 15 - 50% returns in just 8 trading sessions.
We will start of with the election buzz in India. Of course election result of a biggest democracy in the world is the too bigger event and the stable government can lead to revival in economy and GDP growth but not in a day. The markets are set on fire on the hope of "Ab ki baar Modi Sarkar" by huge FII inflows and the volatility index is at 5 - year highs as NIFTY is trading at record highs. Well its better to discuss what charts and price action suggest, which are vital for investing/ trading objectively in a process rather predicting the election outcome for which others are there. Because according to the Charles Dow - "Price discounts everything expect the acts of god".
Although Indices have moved up in the range of 12 - 16% till date, they cant be actively traded. We will list some of the stocks which were recommended to our paid subscribers and their performance. The stocks in the respective sectors have given a whopping returns of 15 - 50% returns in just 8 trading sessions.
Raju V Angadi
Equity Research Analyst
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
We will start of with the election buzz in India. Of course election result of a biggest democracy in the world is the too bigger event and the stable government can lead to revival in economy and GDP growth but not in a day. The markets are set on fire on the hope of "Ab ki baar Modi Sarkar" by huge FII inflows and the volatility index is at 5 - year highs as NIFTY is trading at record highs. Well its better to discuss what charts and price action suggest, which are vital for investing/ trading objectively in a process rather predicting the election outcome for which others are there. Because according to the Charles Dow - "Price discounts everything expect the acts of god".
As I believe in doing what you know and appropriate price with favorable risk/reward ratio is to invest/trade objectively. Let's check with simple technicals of couple of indices which can provide an insight about the favorable risk/reward investments/trades below in coming months ahead.
CNX METAL
CNX Metal Weekly Chart
CNX Metal has broken out of a 2.3 years down trend and have confirmed a higher top higher bottom formation, which has been a laggard in most of the bull market. The pattern in index suggest minimum targets of 2800/2870/3000.
The good stocks to watch out for are Tata Steel, NMDC and SSLT which can add up to 20+% returns from current levels.
CNX Infra
CNX Infra Weekly Chart
CNX Infra has broken out of a inverse H & S pattern on weekly charts suggesting a pattern targets of 3400.
Charts suggest still there is left some of the beta counters but one needs to be selective in which stocks to opt in this speculative environment.
Note: Any buying in stocks is better to hedge with puts as election is a big event and technically there is a Shooting Star and Doji formation in Daliy charts below 7078 cautious outlook needs to be taken and below 7020 confirms an Exhaustion gap confirmation and NIFTY can fall steeply. Trade/ Invest wisely and objectively as markets are at higher end in a speculative environment.
Raju V Angadi
Equity Research Analyst
To know more about probable counts analysis on NIFTY, BANK NIFTY, CNX METAL, CNX INFRA and other indices along with 5 stocks for the month check out our newsletters and advisory services contact us back on rvangadi@googlemail.com (OR) swingresearch5@gmail.com (OR) +91 78291 55900
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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
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