Nifty analysis for 10 June 16

Nifty Analysis for 10 June Day before yesterday I had mentioned about negative divergence on Nifty chart. That divergence has played yesterday to drag Nifty down. Today Nifty may see some bounce in initial hours. However it may not sustain. Nifty is sell on rise for the day. Resistance is near 8220 and then at 8250. If Nifty breaks below 8180, it may see substantial slide till 8150, 8085 Nifty 15 min Chart   Swing/positional trade studies for the day: Sell Biocon for a target of 710. Stoploss is 735 Buy Cipla for a target of 490. Stoploss is 472 -------------------------------------------------------------------------------- Recent gainers researched by us: Potential to move 46% from current level- Kiri Industries Edelweiss Financial Services gained moved 9% yesterday. Research article was published on 23 May near levels of 70. Rounding bottom breakout in Edelweiss suggests 30% upside Read 5 steps to keep your Technical Analysis simple

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Potential to move 46% from current level- Kiri Industries

Speciality Chemicals as a sector is currently doing well. Many speciality chemical stocks recently rallied to register good recent in the past one month.

I hope you would have read my article on Pidilite Industries written on 3 March. In than article I had mentioned about an anticipated breakout in Pidilite. That expected breakout has come on 20 June. Since then the stock has seen a nice run up. The gains since the article date till now are 16.5%.
The stock still has a potential to move further. All my paid subscribers are advised to book partial profit in Pidilite.

Many other stock like Megmani Organics, Sudarshan Chemicals are on similar run up.

Kiri Industries is another stock from the similar fraternity which is expected to give some quick gains.

Here is Technical Set Up of Kiri Industries. This stock had broken out of consolidation on 3 March 16 to give a huge run up from 102 on 3 March 2016 to 215 on 12 Apr 2016. It means stock had more than doubled in just over a month. After that stock went into consolidation. The phase of consolidation lasted for about little lesser than 2 months from 12 Apr to 2 June.

On 3 June stock has again started rallying with a nice volumes. A bullish candle on 3 June helped stock break from long consolidation. This overall set up confirms the Flag Pattern formation in Kiri Industries chart.

This Flag Pattern confirmation gives a target of 328. That is an anticipated move of 105 points and gains of 46% from current levels.

Check the chart below:

Buy on dips – Nifty View 6-10 June

Last 2 weeks bulls exhibited their power to completely out-power the bears. Global markets too were in a mood of expansion. Better macro-economic data and descent corporate results are supportive to higher moves in markets.   

But is this the right time to buy Nifty? 

Technical Overview: Last week Nifty opened at 8166 and closed at 8220. That was hardly a range of 55 points. This small green candle exhibits lost momentum in current ongoing trend. Markets in cycles of expansion and contraction. Currently Nifty is experiencing one such contraction period. Nifty is also trading near a broad resistance area between 8240 and 8336. There is a possibility that Nifty can consolidate near current level or it may correct a bit to its immediate support.  

Supports are 8180, 8085 and 7990 

My View: Every correction in Nifty is a buying opportunity. This may not be market for short selling unless you are very aggressive Swing trader, through a short-selling opportunity exists near the resistance areas as mentioned above. However better trade is buy on every dip. Buying at current level is not offering us a great risk reward ratio.  

I have been writing about start of an uptrend in Nifty since early March 2016. Technical Analysis can help us identify the moves at the very beginning and thus help in gaining maximum profits. Below are some of the articles (Nifty View) through which I had sent a message to readers of this newsletter about Nifty's Bulls run.     

Beginning of uptrend in Nifty? – Nifty View 8- 11 March 

Next destination 7900? – Nifty View for week 4-8 Apr 

Nothing wrong with the bulls – Nifty View 16-20 May 

Similarly I identify fast mover stocks and help my subscribers to earn decent profits in short-medium term moves. I time to time publish articles on my analysis of these kind of stocks on my blog. 

Some recent articles are given below: 

PSU Banks a good short term contra bet 

Rounding bottom breakout in Edelweiss suggests 30% upside 

Bottom-Fish this stock for 50% gains in couple of months 

SKS Microfinance - Potential to move 100% in one year 

Most of these stocks have earned decent returns. No tall claims but a genuine analysis and 'keep it simple' strategy helps my model portfolio subscribers / training participants grow their wealth. 

If you wish to be a part of group of happy subscribers or training participants write me at unmesh@bonvista.in or directly subscribe through my website 

I have enclosed the chart below to understand the levels on chart 

Nifty Analysis for 2 June

Ranges break on either side at some point in time. Lets expect Nifty range to break soon. As Nifty is not sustaining at higher levels, we can expect it to break on lower side. This will bring in some correction to ongoing uptrend of Nifty. Resistance is near 8210 and 8200. Support is near 8160 and 8140. Sell on rise can give better rewards than buying Nifty today Nifty 15 min Chart   Swing/positional trades for the day: Sell Ashok Leyland for a target of 102. Stoploss is 107 Sell Cummins India for a target of 750. Stoploss is 800 Sell Union Bank for a target of 111.50. Stoploss is 117 Buy Aditya Birla Nuvo for a target of 1120. Stoploss is 1040 Buy Adani Ent for a target of 78.50. Stoploss is 72.50 -------------------------------------------------------------------------------- Recent gainers recommended by us Read 5 steps to keep your Technical Analysis simple Pidilite Industries breaking out -now up 16.5% from recommended price (Read Pidilite article written on 3 March) SKS Micro Finance booked profit with 19.8% gains from buying price (Read article written on 25 Apr) Berger Paint booked profit with 21.85% gains from buying price M&M Financial Services up 32% from buying price (Booked) (Read article written on 12 April)

Premium Product Prime Cash A Model Portfolio Click here to check detailed performance Plans: Half Yrly – Rs 5900/- and Yrly- Rs 9900/- Objective of this portfolio is to earn yearly gains of 36% to 48% Features PRIME CASH PORTFOLIO: Concentrated Product, focused approach Keep it simple. Follow the framework Long only, wealth creation portfolio 31% returns in last Financial Year though the market was falling Trade with a portfolio approach- trade all the calls We shall guide on position sizing time to time Unique On-line Trading Advisory System maintains all the recommendations. Login ID and Password will be provided to subscribers No need to watch markets during the day No action to be taken during the day. All buy/sell at the start of the day Spare only 10 mins for the day Very low risk as no F&O calls in this portfolio Click here to subscribe for this portfolio

Nifty analysis for 1 June 2016

Range for Nifty continues. Today as well Nifty is expected to consolidate in the range.   Bulls does not seem to have strength. Buying Nifty is suggested only on breakout beyond 8200. Intraday Sell Nifty on rise near 8180 and 8200 levels. Nifty 15 min Chart   Swing/positional trades for the day: Sell Reliance Communication for a target of 44. Stoploss is 49.3 Sell Glenmark for a target of 839. Stoploss is 865 Buy Tatasteel for a target of 345. Stoploss is 327 Buy Colgate Palmolive for a target of 890. Stoploss is 845 Buy Aurobindo Pharma for a target of 810. Stoploss is 760 -------------------------------------------------------------------------------- Recent gainers recommended by us Read 5 steps to keep your Technical Analysis simple Pidilite Industries breaking out -now up 16.5% from recommended price (Read Pidilite article written on 3 March) SKS Micro Finance booked profit with 19.8% gains from buying price (Read article written on 25 Apr) Berger Paint booked profit with 21.85% gains from buying price M&M Financial Services up 32% from buying price (Booked) (Read article written on 12 April)

Premium Product Prime Cash A Model Portfolio Click here to check detailed performance Plans: Half Yrly – Rs 5900/- and Yrly- Rs 9900/- Objective of this portfolio is to earn yearly gains of 36% to 48% Features PRIME CASH PORTFOLIO: Concentrated Product, focused approach Keep it simple. Follow the framework Long only, wealth creation portfolio Trade with a portfolio approach- trade all the calls We shall guide on position sizing time to time Unique On-line Trading Advisory System maintains all the recommendations. Login ID and Password will be provided to subscribers No need to watch markets during the day No action to be taken during the day. All buy/sell at the start of the day Spare only 10 mins for the day Very low risk as no F&O calls in this portfolio Click here to subscribe for this portfolio

5 step guide to keep your Technical Analysis simple

Advantages of technology are counter productive some times. Internet has made us available plethora of information, but its very difficult to choose the right piece of information from all the stuff available after a simple google search. 

Similarly in Technical Analysis, there are so many ways and means of doing the analysis, so many tools to use, so many methods and so many techniques. Add to it, so many good charting software available in market, makes it difficult to choose a right one for an individual trader. A first hand learner usually find himself lost in the sea of indicators, oscillators and averages and what not.

Its about choosing the best that suits your trading style. Here is a 5 step guide to keep your Technical Analysis simple -

1. Decide your objective- Decide whether you want to be Trader or a Student. If you are a trader then confine yourself to learn only that much (at least during your initial trading days) which is required to your trading style. You can just pick them randomly, if you don't know what to look for. If you are a student and just want to learn Technical Analysis for purposes other than trading then access all the information available through sources like internet. A trader must not get himself lost sea of information. Instead its about rejecting what comes your way. Don't spend hours watching You Tube videos of indicators / oscillators not of use to you.

2. Use the basic- Confine yourself to basics like Trend, Support/Resistance, Candlestick Patterns and Chart Patterns. These are the basic tools one should use to take buy / sell / hold decision. Indicators, Oscillators and Moving Averages are just the support tools. Don't use them for decision making. Rather use them to support your buy/sell decision. In My Courses I thrust on using the basics and use of only one indicator that will support your decision.

3. Perfect a few of them- Instead of learning lot of things available in the field of Technical Analysis, use and try and perfect only couple of them. Any tool in Technical Analysis is actually understood after using and practising it over a period of time. Do lot of back-testing or paper trading on one or two set of tools which you are comfortable with. Practising few things is rather more important than learning many things.

4. Trading is not only about analysis- Trading in not only about analysis. Be it Technical or Fundamental. There are many important things like Risk Management, Money Management and Psychology Management. These things play a rather important role than any analysis in your trading success.

5. Take a break- More analysis does not mean more perfection. More tools does not mean greater success. More analysis does not mean more money. Take a break, decide your set of tools (in technical analysis) as a pat of trading plan and strategy. 

Any analysis play only 40% role in your trading success. So don't be over complicated. You will earn good profits even if you are 'right' only in 65-70% of the trades with correct Risk Reward Ratio,