Advances- 506 Declines- 644 Unchanged- 69
Advances- 1099 Declines- 1319 Unchanged- 159
Thursday, Indian stock markets witnessed selling pressure as US Central bank announced a cut of 10 billion dollars in the monthly stimulus package, ie from 85 billion dollars to 75 billion dollars. Though the US markets traded positive after that, Indian traders and investors became panic and which resulted in the sell off. But several analysts are of the view that US QE tapering may not affect Indian markets too much. So the markets may trade flat and volatile on Friday.
BSE benchmark S&P Sensex opened at 20959.80 after reaching a high of 21017.45, went to a low of 20646.03 and closed at 20708.62 (151.24 points or 0.73 per cent lower). S&P CNX Nifty opened at 6253.90 after seeing a high of 6263.75, went to a low of 6150.70 and then closed at 6166.65 (50.50 points or 0.81 per cent lower). MCX-SX 40 closed at 12336.53 with a decline of 63.06 points or 0.51 per cent. Market breadth was negative on both NSE and BSE.
Intraday technical trend of Nifty and Sensex is still 'Weak'.
Friday if Nifty breaches 6229 and stays above at least 6198 with good volume then NIFTY trend is becoming 'STRONG' and may see 6258, 6298 and 6340. If nifty crosses 6104 and stays below 6136, it is weak and it may see 6082, 6055 and 6020. If SENSEX breaches 20913 and stays above 20811 with good volume then Sensex trend is becoming 'STRONG', possible upper targets are 21000, 21130 and 21270. If SENSEX crosses 20504 and stays below 20606 with good volume then Sensex trend is said to be 'WEAK'. Then expected lower targets are 20425, 20335 and 20220.
Intraday break out level to watch on SENSEX- 20913
Intraday break out level to watch on NIFTY- 6229
Intraday break down level to watch on NIFTY- 6104
Intraday break down level to watch on SENSEX- 20504
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- 1. 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.
2.Keep an eye on this weeks important global economic events.
3.Keep an eye on this weeks important US economic events.
4.Keep an eye on weekly trend.