Short term trend is Bullish…

As I mentioned in my previous blog, 5400 was a crucial resistance for Nifty. Nifty broke that resistance and made a High of 5630 but couldn’t succeed to hold that level. It came down to 5135 once again. Now 5200 to 5400 is the range for Nifty and either side breakout will decide the new range for Nifty.


I think bias has shifted to buy side for short term & we may see a triangle breakout which will take nifty to 5900-5950 level. But that does not mean the major trend has changed, market will come down once again. It will not make a new high.

These stocks may outperform in short term.

In this leg Mid Cap & Small cap firms will outperform the large cap stocks. So I will suggest invest in mid cap stocks of strong sectors

Sectors Looking Strong on Charts:


Auto, Banking, Pharma n Healthcare & FMCG


Sectors looking weak on charts:


Oil & Gas, Metals, Real Estate, Power & IT


To conclude, one can buy Nifty above 5390 for target 5940 with a stop loss below 5135. This is pure short term view, biased is still negative so investors can still hold their funds in debt instrument. One large sell off is still pending in market. Happy Trading!!!!

Is Market Bottomed Out????

When everybody in the market expects market to come down, market always reacts opposite. The same happened this time. Everybody was bearish on market and giving down targets. After breaking a low of 4632, Nifty made a new low of 4538. All market participants were expecting Nifty to come down to 4300-4000 level but Nifty reacted differently. Nifty gave a good bounce back in January and came back again to 5149 level. Is market bottomed out????


I will wait for confirmation. Still there are no signs of trend reversal in Nifty. Neither I found any trend reversal pattern nor Nifty has made Higher High and higher low (previous high 5402 is still intact). So I will wait and watch.

Let us assume Nifty has bottomed out then also it will have to come to 4850-4900 before making new High. If Nifty takes support at this level and gives bounce back and makes a new High, then only we will mark this as trend reversal. Second level of confirmation will come once Nifty breaks 5400 level.

Now let’s look at the chart; whenever RSI is near 70, Nifty has changed the trend. It has started coming down from that level. Since last one year whenever Nifty is coming down volumes are high and low on bounce back. In this bounce back also volumes are low.

Following Sectors looking weak on Charts:

IT, Metals, Power, Real estate, Oil & Gas

We may see profit booking in following sectors:

Consumer Durables, Capital Goods, Mid Cap and Small cap

Following sectors will Out-perform the market:

FMCG , Auto, Banking & Health Care

To Conclude, Nifty has not bottomed out yet. We will wait for confirmation. Confirmation will come only if Nifty makes higher low around 4850-4900 and then makes new High. If not, then we are still in down trend and down trend will resume once again below 4780.


WAIT AND WATCH FOR CONFIRMATION. Happy trading!!!!!!!