Charts for the Day

[anil_s_trivedi]

Nifty had support at 10850-880 zone while 200 sma is away at 10745 levels...The selling on fridays led to long tails in many stocks while some formed big down bars...Whatever it is the fragile character of market got exposed on friday...The selling in housing finance companies triggered the sell in many stocks simultaneously...

Nifty bank closed below 200 sma a cause for concern here...Situation is so tense that as of its outside bars in bank nifty index, Nifty FMCG....Media index closed below 50 sma on monthly...yes monthly...

oil & gas, IT have some hope left...as ..as nothing cautioning yet in these space...while pharma just resisted at 50 sma on monthly...

Bulls need a quick bounce in these indices else we are going into big slumber slowly.

Market is scrip specific and getting difficult to pin point the sectors to come next...rotation is so fast that one week gain and other week its just a selloff...

What to do now...??

Nifty is yet to breach 200 sma and as long as it is holding it one can hold the view of uptrend intact...but to pin point the next sector to lead is getting difficult...Plat stock on its merit and have good money management the friday episode is just trailer of high volatility times what one have seen in 2008...

 

[GarethSoloway]

The iShares Transportation ETF (IYT) broke below the daily 20 moving average on higher than average volume. In addition, the breakdown has taken the transports below the January 2018 pivot high. This move below is a major indicator of trouble for the overall market. Pro traders are keeping a close eye on the transports for the remainder of the day and discussing getting much more defensive. The transports are looked at as a major leading indicator for the domestic economy. A sharp drop in the transports will likely signal a coming drop in the stock market.

 

[khurshedmanjra]

Anil ji,

While IT sector was booming, WIPRO did not participate in the run up then. Now that things have subsided in this sector, WIPRO has started its move. Your views on this ?

 

[anil_s_trivedi]

Anil ji,

While IT sector was booming, WIPRO did not participate in the run up then. Now that things have subsided in this sector, WIPRO has started its move. Your views on this ?

Yes true when all scrips started trending up during last september wipro just got hitted highs in jan-2018 and falling till june-2018...This scenario is always there when sector turned up there are some laggards who just resist to follow the sector trends...But once the leaders stopped running money shifts to tier-2 or tier-3 scrips as smart money wants to make most of it until sector trend persists they want to extract every penny out there...Rotation inside the sector always there thats why first right of runup generally led by largecaps then midcaps and smallcaps follow...and real money is made in midcaps & smallcaps...

Wipro right now sitting on most bullish setup in the lifetime...a cup with handle on monthly charts...if breakouts and sustains scrip would run like anything...but failure here would be hard time for scrip...

 

[anil_s_trivedi]

Nifty IT not in best of health, bar trying to make an outside bar near highs...not a good sign...Required caution...

 

[anil_s_trivedi]

Nifty FMCG monthly charts...making a outside bar...a big one...defensives getting dragged in higher timeframe...whats cooking...

 

[ravi2126]

@anil_s_trivedi Ji, one question, When some chart r looking good (reliance,sun pharma) but market not giving the same indication....how to react on this..should v take entry or avoid....?

 

[anil_s_trivedi]

@anil_s_trivedi Ji, one question, When some chart r looking good (reliance,sun pharma) but market not giving the same indication....how to react on this..should v take entry or avoid....?

Raviji,

Nifty is still in uptrend and play stocks charts to its own merit...infact these are scrips which are resilient to fall along with nifty...so they are showing better relative strength vs nifty...

Focus on better chart setups and better risk reward trades only...Generally when main market index trades below 50 sma on daily there are trades bound to fail and when it trades below 200 sma then stock trading is a nightmare to trade on long side...

For your own inquisitive query you can see past charts when nifty is trading below 50 sma but above 200 sma how leading stocks charts setups materialize you will get the point...see historical charts...

 

[Riskyman]

Wipro right now sitting on most bullish setup in the lifetime...a cup with handle on monthly charts...if breakouts and sustains scrip would run like anything...but failure here would be hard time for scrip...

Wipro is also sitting at a triple top on the weekly. If USDINR strengthens then that top can be a challenge to cross

 

[anil_s_trivedi]

Nifty gap down below 200 SMA not at all good for bulls. Tried hard to climb up but failed at 11670-680 levels...treat it as resistance in 5min timeframes...Hourly strength now can be seen only above 10970 which is way up...
Now 200 Sma is resistance level at 10778...

Trade with plan dont try to catch falling ones in hope it will recover or it has to recover...Market doesnt know you personally to obliged you...

Sustaining nifty below 200 SMA would be more frustrating for bulls...