Week Review January, 12, 2013

The Bull is still Struggling

The week began on a quiet note in-line with mixed global cues. As the week progressed, we witnessed a series of resembling trading sessions, where the bellwether indices, the Sensex and the Nifty, opened higher for the day and then corrected lower during the second half of the session. Similarly on Friday too, indices opened higher on the back of stellar Q3 earnings from IT giant Infosys. A whopping intraday rally in excess of 15% in Infosys somehow defended our benchmark indices while all other index heavyweights experienced sharp cuts. During the week, the indices struggled to sustain above the resistance level of 19798 / 6021 (Sensex / Nifty). Further, as mentioned in our previous daily reports, closing below 19679 / 5981 has confirmed a 'Hanging Man' as well as the 'Engulfing Bearish' patterns. As expected, indices then gradually slipped towards the immediate support levels of 19624 - 19509 / 5960 - 5935. During the week, the Capital Goods, Consumer Durables, FMCG and Metal counters experienced a heavy profit booking; whereas the IT and Teck sectors posted massive intraweek gains. The Sensex and the Nifty ended the week with a loss of 0.61% and 1.08%, respectively.

Future Outlook

Last week's strong closing is followed by a muted week. Despite positive opening on most of the trading sessions, indices traded with negative bias and corrected gradually during the week. At present, we are observing that indices are now approaching '20-Day EMA', which is considered as a decent support level. However, negative placement of 'RSI-Smoothened' and '3 & 8 EMA' on the daily chart amidst a corrective chart structure in many index heavyweights indicates at a possibility of a near term correction in the market. In addition, 'Negative Divergence' in the daily 'RSI' momentum oscillator is still intact. Hence, in the coming week, if our benchmark indices manage to sustain below the '20-day EMA', then we can expect a corrective move towards their next support levels of 5842. Conversely, a sustainable move beyond this week's high of 19857 / 6042 would certainly nullify all possibilities of a short term correction. In this scenario, indices may resume to their larger degree bullish trend and we may then expect an extended up move towards 19950 - 20100 / 6070 - 6125. However, we reiterate that traders should consider reducing long positions and partial profit booking in individual large cap counters near to the 19950 - 20100 / 6070 - 6125 mark on the benchmark indices.

Comments

NDPMS Stock Advisory

It is entirely possible that NDPMS could have, from time to time, some trading or investment positions in the stocks being discussed on the blog. This blog is not intended for distribution to, or use by, any person or entity, any jurisdiction or country, where such distribution or use would be contrary to local law or regulation. Reproduction in whole or in part without written permission is prohibited.

12.1% Equity Return in 10 days !! Review it to believe it !!

This is a pseudo folio. The base folio amount was kept at Rs 1 lakh and was created on September 26, 2015. Most of the positions are still open hence please consider this post as an update on the folio.The folio heat was kept at 10% which in simpler words mean that of all position gets their stop losses hit, the folio will drop maximum by 10%. Risk reward ratio is kept at 3:1 which implies that target points are set at 3 times the risks per position taken. This post is subjected to promotion of NDPMS Stock Markets Training Program. Please read the disclaimer before forming any opinions about the post, stock markets or NDPMS Wealth Management. Disclaimer: The intention of this post is not at all to entice the blog viewers to take up NDPMS Advisory Service. The post is solely used to promote NDPMS Training Program. It is entirely possible that NDPMS could have, from time to time, some trading or investment positions in the stocks being discussed on the blog. This blog is not int...

Professional Trading !!

Professional Trading is a profession where an individual makes his living from trading in stock and commodity markets. A professional that involves prolonged training and experience. It provides you with other various opportunities. It gives you freedom of time and money. It has no competition threat. There are no deadlines, no geographical deadlines, no dependency on staff. You are your own boss. When people come to the world of trading many think that they only need to learn a strategy and follow the rules of that strategy and they do this for a while. The problem with those who do not first get a good foundation of the markets is that when the markets change or when they have a draw down they start making mistakes. Those mistakes lead to self sabotage even in the healthiest of minds. The process of trading is only enjoyable when your sub conscious mind figure out the right ways for trade. In other words those who start with passion very often find that those feelings are...

NDPMS Wealth Management

Search This Blog