Nifty view for the week starting 27 Feb

If you go by last week's comment, I had said Nifty need to closed above 8960, which is previous high, for it to start new bull run. Nifty is still struggling to close beyond this point.
Detailed view with levels is available to our premium subscribers.

TCS- Changing the trend

Markets / Stocks runs in cycles-

For an early entry you need to identify a change in the cycle (trend). 

In this case TCS was so far trading in sideways trend. With a breakout in last 3-4 days there is an evidence that there is a probable change of trend in TCS. So the new trend is an uptrend.

TCS daily chart below-

Nifty - Trading with strength but deserves a rest

Most of the important events are past us. The good thing about these events was that they have let India VIX move hardly. This shows the maturity on part of market participants as well as on part of government. The Union Budget and RBI policy were instrumental in not creating hype of these events. They seem to be well focused on essentials as compared to their predecessors. Yes, I mean it.

Lets see how Nifty looks like on Technical charts. 

Below is the daily chart of Nifty. Notice the narrow channel in which Nifty is trading. This channel Nifty is trading at the stretched levels near higher end of the channel. Last 3 days repeated hanging men, however are suggesting that the bulls are exhausted for the time being. As a trader I would wi

sh to enter at the cheaper levels than this. The support areas below suggest that even if correction happens it may have a short living effect.

Below is the weekly chart of Nifty. That Hanging Man at the top is little worrisome. This hanging man is formed near the third top. Hence to neutralise this pattern Nifty need to convincingly close above 8968. Any close below 8973 in the coming week will add to the worries bulls. The supportive indicator is also overbought. Trading with caution should be the key for Bulls.

 

We provide Advisory Services starting just at Rs 3900/-

In case you are interested you can write us at sagar@bonvista.in or call us on 9371444875

Justdial - Head & Shoulder breakout

Justdial has been in down trend since Jan 2015. The stock has been continuously witnessing a fall and the stock is down by whooping 75%. This head and shoulder breakout can be a start of short term uptrend in the stock.

Ujjivan and ICICI Pru Life - Recent IPOs with an attractive proposition

Ujjivan  and ICICI Pru Life are the two IPOs launched in recent past. Both the stocks are looking lucrative now.

Lets go one by one:

Ujjivan has strongly surpassed its major resistance yesterday to close near 424. You can see on the chart below that that after posting high near 530 the stock has seen a healthy correction which took the stock to around 275. This was very near to its listing price of 230.

Here on we can expect the stock to continue the momentum.

ICICI Pru Life after its listing in Sep 2016, was trading in a broad range between 330 and 285. The stock has broken out of this range on 10th Jan. It then went up to post a new high of 363.50. The stock then went into a correction and tested its breakout level as shown on chart. We can expect the stock to continue to trade with same momentum.




Analysis and actual entry in a stock are two different things. While analysis gives you broader picture about the stock movement, the entry exit levels gives your more refined idea about the risk management. On this blog most of analysis of most of the ideas is given. If you are keen to know get the detailed recommendations like Entry level, Stoploss, Target and exposure for a particular script with regular followup on action to be taken, please subscribe to our paid services. We have kept the costing of services very low to make it easier for even the retail investors to participate in markets.
You can write us on sagar@bonvista.in or call us at 9371444875 to know more about subscription.