Reason for Sensex crashing to 13 month low

[ Friday, September 4 | 0 comments ]
The BSE Sensex  and Nifty are trading near 13 months low and have declined 17% from the 2015 High which we saw on 04 March 2015.  In Just 6 months Stock market have wiped out the gains made in past 13 months.Let me put the reason from both Technical and Fundamental Perceptive Sensex corrected by 500 points Nifty almost 200 Points making today as Black Friday.I am discussing few points below which would had led to the correction.

1. Fundamental

  • Concerns over Fed rate hike
Equity Market likes liquidity, Friday Strong US jobs data and Unemployment rate coming sub 6%  fueled expectations that the US Federal Reserve may raise interest rates sooner than previously thought.
Hike Rate means sucking liquidity out of system and this will flight to safe assets in Bonds and stronger currency like USD and money getting sucked out of Emerging market. India Markets have received $11Billion in 2015 till date and up 8% till date so profit booking can be done by FII's.


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HUL.Glenmark and Axis Bank Harmonic Pattern Analysis

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HUL

HUL

Positional/Swing Traders can use the below mentioned levels

 Close above 843 target 870/898.

 
Intraday Traders can use the below mentioned levels

Buy above 836 Tgt


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Nifty bounces again from demand zone,FII FnO Data Analysis

[ Thursday, September 3 | 0 comments ]
FII
  • FII's bought 20.3 K contract of Index Future worth 458 cores ,22.4 K Long contract were added  by FII's and 2.1 K  short contracts  were added by FII's. Net Open Interest increased  by 24.5 K contract, so today's rise in market was used by FII's to enter long  and enter  shorts in Index futures  Offense and Defense in Trading
We have been discussing in previous analysis Nifty continued with its fall and is tad below the swing low of 7767. Nifty is now entering the demand zone of 7663 holding the same we can see sharp bounceback, unable to close above 7663 on weekly basis can


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Offense and Defense in Trading

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Offense:
You need big winners to pay for all your little losses. When the opportunity of a high probability entry happens you must take it. Or if you are trading a trend following system and are in a draw down you must keep trading in the direction of the trend so you will catch the big wave when it hits.
  1. Let your winners run until you are stopped out with a trailing stop or a candle stick signal of an eminent reversal.
  2. Do not exit a winner until it stops moving in your direction.
  3. Enter a trade only with the a minimum 1:1 risk to reward ratio, the upside has to always appear to be bigger than the downside.
  4. Only trend trade trending equities and markets, swing trade range bound stocks and markets. Remember that they only fit these classifications until they don’t.
  5. Do not marry a trade, only date it.

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Glenmark,HDIL and Bank of India Darvas Box Analysis

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Glenmark

glenmark

Positional/Swing Traders can use the below mentioned levels

 Close below 1076 target 1042/1021.

 
Intraday Traders can use the below mentioned levels

Buy above 1085 Tgt..


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