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.
· 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 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
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.
· 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
Our Subscribers received this weekly digest at the start of last week, To know more about probable counts analysis on NIFTY, BANK NIFTY, CNX IT and other sectors performance along with 5 stocks for the month check out our newsletters and advisory services contact us back on rvangadi@googlemail.com (OR) swing research5@gmail.com (OR) +91 78291 55900.
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