Recommendations of the week 18-22 Jan

Recommendations for the week: 

DRREDDY (Buy): Buy DRREDDY near 2936 for target of 2980. Stoploss at 2900 

GRASIM (Buy): Buy GRASIM near 3504 for target of 3550. Stoploss at 3470 

VOLTAS (Sell): Sell VOLTAS near 280 for a target of 275. Stoploss at 284 

My Prime Cash portfolio completed 6 months. This portfolio has given returns of 32.6% during this period. Check the detailed performance here. This portfolio invests in socks for short to medium term. 

Investors are advised to read disclaimer before buying any stock. 

To subscribe to Free Recommendations and Newsletter click here 

Is Nifty near bottom? - NIFTY View For Week 18-22 Jan

In this newsletter read about how critical Nifty fall is and where is it expected to stop 

Indian markets joined world markets to continue northward journey. The 'make it or break it' point of 7540 is finally broken by Nifty. Falling oil continued to panic world markets. Last week I had indicated at the fall if Nifty breaks 7540- this has come about. 

Question is - where is bottom? 

Technical Overview: Last week Nifty made high of 7605 and low of 7425 to close at 7437. A range of 180 points. Nifty closed near its low. However Nifty chart and technical indicators are indicating that Nifty is extremely oversold. (When a stock or market is extremely oversold, the chances of it being bought are high) This buying can bring about a relief rally. 

Supports I had mentioned  in last post are brutally broken by forceful bears.  

Next support emerges at 7368-7193 range. Resistance is at 7535-7605 range.  

My View: On a larger scale Nifty can see further downside. On a shorter time frame Nifty deserves a pullback. Options data indicating no unwinding of puts at 7400 and OI is 53.5 Lac. So smart money can pull the markets up. Now the base has moved down to 7368 level. 

Wise man's act: A wise trader or investor should always have plan ready for his risk and money management during this kind of eventualities. Analysis can fail on shorter timeframes- we should be ready for rescue plan.  

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

Recommendations for the week 11-15 Jan 16

CROMPGREAV (Buy): Buy CROMPGREAV near 193 for target of 199. Stoploss at 185 

BATAINDIA (Sell): Sell BATAINDIA near 489 for target of 482. Stoploss at 496 

TVSMOTOR (Buy): Buy TVSMOTOR near 285 for a target of 290. Stoploss at 280 

Grand welcome to 2016 - NIFTY View For Week 11-15 Jan

In this newsletter read about how Nifty is trading at crucial level, a make it or break it point. 

You must be surprised with the heading of this letter. However one should never forget that markets are run by bulls as well as bears. This time it was turn of bears who welcomed Nifty in 2016 by creating mayhem with a fall of almost 360 points- last week.  

I could not write this letter last week due to some unavoidable reasons.  

Technical Overview: Last week Nifty made high of 7937 and low of 7556 to close at 7601. A range of 380 points with a huge red candle. Nifty closed near its low. This low is also near earlier bottom of 7540-7550. Nifty is now trading in oversold territory. 

Major global markets closed near their weekly low. However they are trading near their earlier lows (support) and are also in oversold territory. 

It becomes immensely important for Nifty to hold 7540 for us to believe that bulls are action, at last to some extent. However the big fall in last week forming a big red candle is exhibiting bear power. This power may not diminish soon. 

New resistance is formed on Nifty chart near 7720-7800. Barring current support of 7540, Nifty has next support at 7480-7425 

My View: If Nifty opens above 7540 on Monday and holds it for the day, we may see some bounce in Nifty, say up to 7720. However after reaching this resistance it can start moving northward again. Or Nifty breaks below 7540 and keeps moving down. In either case Nifty chart is giving me the feeling that it wants to move further down.  

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

SRF Daily strong Supply with Negative Divergence

SRF Daily Chart Below

Check the Negative Divergence with good supply area.

Opportunity for bears.

#Swing #Futures #Aggressive #Demand #Supply