Observations & Possibilities:

• Nifty has broken 4960 decisively.
• In short term 4850 & 4620 levels are possible on downside for Nifty. 4200 possible in few months  on NIfty.
• Intermediate trend of Nifty will turn UP if  it  closes above 5210.
• The  red trend line in the chart is important supply zone.
• Moderate risk in initiating  fresh long term investment. ( See Stocks which turned  bearish  today  at the end of this column)

Market Technicals:

Market Breadth : 0.10

Market Trends : Short  term trend of market is down. Intermediate trend is DOWN.

Intermediate trend of market will turn UP if market closes above 5210 for Nifty.

Support levels for Nifty are 4840 ,  4800 , 4680 , 4200 , 3500.

Resistance levels for Nifty are 5050 ,5120 ,5200,5280 ,  5340 , 5400

Long term Bearish Stocks : ACC , SAIL , Reliance Power, Reliance Infrastructure, Reliance Industries ,  Ranbaxy Lab , Power Grid , Idea ,Gujarat NRE , Hindalco , NMDC , NHPC , Triveni Eng. , Mercator Lines ,  Jindal SAW , IDBI Bank , GTL Infra , Fortis Healthcare , Century Textile.

-Nishant Kalaskar.(9881575125)

-                                                                                          -

Surprised? …to read “Train”, “Jellyfish” & “Stock trend” in a row?

All three of them have some qualities in common. Let’s check them one by one.

The Train.

Before starting the journey in one direction, the train keeps blowing the horn, as if asking everyone to take position!

The Train doesn’t stop immediately once it starts in one direction. Nobody dares to stand in front of it (unless somebody wishes to commit suicide!). If you are inside the train, no matter how heavy you are, train will carry you with it. The power of train is always more than anybody inside it.

Now, some qualities of the Jellyfish.

We know the Jelly fish floats with the water, and never crashes to the bottom. Also, it never comes on the surface of the water to become food for some hungry bird. Although it looks fragile and brainless, it takes advantage of different undercurrents of water and it keeps moving, effortlessly. Swiftly changes with undercurrents. This quality of the Jelly fish reminds me of a Swing trader!

Now, the stock market trend.

The Stock market trend, once set in a direction, up or down, it remains in that direction till the direction is not changed to the opposite. Just as a train, the stock trend also starts with big volume and heavy trading. Tremendous change is seen in the sentiments of market participants at the beginning of a trend. Strong trends frequently pause for few hours or days, just to continue in the direction of the trend. As soon as you confirm the change in the direction of the trend, take position in that direction (just as if you were the Jelly fish taking advantage of the changing water undercurrent!).

Trading against trend is dangerous. In long term, it takes you to a large number of losing trades. Big drawdown. (Stay with the trend and the trend will carry you with it just like the train, no matter how heavy you are.)

All three examples are teaching us the following rules

Trend is a friend.

Take profit slowly.

Trend lasts longer than we feel, though there is never a permanent uptrend or downtrend.

Trend doesn’t change everyday.

Pause in the trend is a part of the trend.

Protect your Profit.

Cut losses at once.

  -                                                                                                                         -                                                                                                                                                                                                                                Market Breadth :  4.00  

Market Trends : Short  term trend of market is Up.  Medium term trend is Up.  Medium term trend of market will turn Down if market closes above 4540 & 15330 for Nifty & Sensex respectively.

Support levels for Nifty are 5030 , 4940 , 4900,  4855 , 4 700,  4670 , 4560 , 4520.

Resistance levels for Nifty are  5060,  5090 ,  5180 , 5550 , 6200.

Breakout  Stocks of the day : Rpower, Maruti.

 Reading Glossary is recommended for better understanding of this column.                                                                                                                                                  - 

Subscribe Daily Trend Report  

• Get Medium term  technical trend report of  + 200 stocks   
• Medium Term Trend of  Every  Sector
• Stocks & Index in the verge of  Trend Revarsal.   
• Unique Stop points to protect your Capital &  Profit.    
• Buy & Sell Recommnedations with Best Position size.

See other details on Products page.