Advances- 680 Declines- 588 Unchanged- 85
Monday, Indian stock markets witnessed extreme volatility, but managed to close positive at close even as RBI kept rates unchanged. BSE benchmark S&P Sensex opened at 19249.90, saw a low of 19084.68 and then went to a high of 19344.28 before closing at 19325.87 (147.94 points or 0.77 per cent higher). S&P CNX Nifty opened at 5820.40, after seeing a low of 5770.25 went to a high of 5854.90 and closed at 5850.05 (41.65 points or 0.72 per cent higher). Automobile and Capital Goods sectors performed well.
Tuesday if NIFTY breaches 5897 and stays above at least 5873 with good volume then NIFTY trend is becoming 'STRONG' and may see 5900, 5930 and 5960.If Nifty breaches 5803 and stays below 5827 then NIFTY trend is said to be 'WEAK'.Then expected lower targets are 5775, 5745 and 5715.
If SENSEX breaches 19469 and stays above 19397 with good volume then Sensex trend is 'STRONG' , possible upper targets are 19480, 19575 and 19670. If SENSEX crosses 19183 and stays below 19254 with good volume then Sensex trend is said to be 'WEAK'.Then expected lower targets are 19100, 19010 and 18915.
Intraday break out level to watch on SENSEX- 19469
Intraday break out level to watch on NIFTY- 5897
Intraday break down level to watch on NIFTY- 5803
Intraday break down level to watch on SENSEX- 19183
How to trade with trends?
On normal trading days if the trend is 'STRONG' the stock or indice is a buy.If the trend is 'WEAK' the stock or indice is a sell.If the trend is 'Flat' one must hold the stock or indice. 'FLAT TO STRONG' trend indicates that one must buy stock or indice on declines for small targets.'FLAT TO WEAK' trend indicates one must sell on rally for small targets.
How to apply trend analysis on stocks?
You can apply trend analysis on stocks also.If the trend is 'STRONG' Select strong stocks and buy with stop loss.If the trend is 'WEAK' Select weak stocks and sell with stop loss.If the trend is 'FLAT' Select strong stocks and buy with stop loss. Also select weak stocks and sell with stop loss.
If the trend is 'FLAT TO STRONG' Select strong stocks and buy on declines with stop loss.If the trend is 'FLAT TO WEAK' Select weak stocks and sell on rallies with stop loss.
NB- As the title indicates this analysis is prepared for Intraday trading purpose.As it is clearly based on momentum and technicals it may have slight impact on Next trading session also.Some times we are considering news also.There are several methods to calculate support and resistance.If you have your own method for analysis we recommend to use that.All the above values are technical calculations with out any guarantee .Keep this values in mind while trading.Trade at your own risk.