Likely formation of a range – Nifty View 14- 18 March

In this newsletter read about probable Nifty movement in days to come 

We have seen markets trading with a good stability last week. Global markets traded mostly in green. No market (Index) has reacted substantially to their respective resistances.  

What next? 

Technical Overview: Last week Nifty made a high of 7547 and low of 7424 to close at 7510. A very small weekly range of  123 points. We need to understand that markets move in cycles of expansion and contraction. One contraction (range) is being formed on Nifty chart. A Doji formation on last weekly candle is suggesting equal strength of bulls and bears. India VIX falling suddenly down to 17 is also indicating at reduced volatility and expected stability. Let's expect markets to be relatively stable in days to come. 

Last weeks resistance near 7540-7600 is yet not taken out by Nifty. Nifty is now trading near this resistance. If Nifty crosses this (7600) hurdle, next one is at 7720 then at 7860.   

Support is formed near- 7380-7350, 7240-7200 and 7000-6980   

My View: Last week I had indicated at likely reversal of trend in Nifty. Though we do not have confirmation of such reversal, there are signs of this reversal being on cards. If reversal has to happen, bulls need to take out our resistances to move higher. Basing (price staying) near resistance is one such sign. So this is likely a buy on dips market, till it respects 7200 level. 

Check the influence areas (supports and resistance on chart below) 

Note: Do not consider these as buy or sell recommendations.  

How have we done during the fall of last one year? 

I have a long only Product Prime Cash. In this product I buy stocks with potentially fast movement over medium term to earn quick gains. A portfolio with strict discipline has made 31.7% excluding brokerage (Rs 63500 on investment of Rs 200000) in last one year. You know how market has fallen over last one year. In-spite of this fall Prime Cas portfolio had 3 positive quarters and cumulative returns of over 31%. 

If you are a medium term trader and want safe portfolio- this one is for you. 

Yearly Subscription charges are increasing from Rs 5000 to Rs 8000 from 1st Apr.  It means subscription is available at discount of 37.5% now.  

To know more or to subscribe to this simple and very effective portfolio advisory click here.  or Call me at 09371444875