This is a note that was sent to Technical Traders Club today in the morning. Expect a bottoming out but it wont be easy will test patience.
Reproducing the same.
-> RSI making positive divergences in last 3 bottoms.
-> RSI is at oversold levels similar to previous bottoms in last 1 year.
-> This is a classical divergence and low risk entry point for medium term.
-> A 38.2% retracement of the entire move from 6000 comes to 7900.
-> Trendlines from the lows of 5100/6000 has been marginally broken.
-> Shorter term trendline from recent lows gives a zone of 8000-8100 as support.
-> Dollex 30 has been one chart which has helped spot the major trend changes and supports in much easier way.
-> Dollex 30 closed at 3357 on Election Day. Also in the last 1 year it has made lows around the 3350-3400 mark.
-> All the lows equivalent to Nifty 7200/7540/7960 were closer to the 3400 mark.
-> Dollex 30 is now just 50-70 points away from this zone. Indicating a good entry point.
Medium Term and Positional Traders can buy Nifty at 8080/8120 and add if it dips to 7950-8000.
Stoploss a closing below 7880.
This could also be a good time to accumulate large cap stock with a medium to long term view. Will keep sending the top bets in coming days.
A non leverage trader can also buy Nifty BEES and Junior Bees.
All our midcap trades have sustained well in this correction. Continue to hold Alstom India, DCB Bank, KRBL, Welspun, Nesco, Avanti Feeds.
Lets hope markets move in the direction our money is placed !! Please do your own research and risk management. Consider above post as educational or timepass 🙂
Securities covered above: Alstom India, DCB Bank, KRBL, Welspun, Nesco, Avanti Feeds
SEBI Registration disclosure – Registration for RIA under Process
Nooresh Merani and his family/associates/ analysts do have exposure in the securities mentioned in the above report/article.
Nooresh Merani and his family/associates/ analysts do not have any financial interest/beneficial ownership of more than 1% in the company covered by Analyst.
Nooresh Merani and his family/associates/ analysts have not received any compensation from the company/third party covered in the above report/article ever.
Nooresh Merani and his family/associates/ analysts has not served as an officer, director or employee of company covered in the report/article and has not been engaged in market-making activity of the company covered in the report/article.
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
Also read the detailed disclaimer – http://www.nooreshtech.co.in/disclaimer