Category: STOCK MARKETS

NIFTY Update Before Tomorrows Event

MARKET in a better space to take the challenge of volitility tomorrow getting pass above 11800 is a positive thing for today. It was important for NIFTY to protect 11470 till today. Now for tomorrow 11500 to 11640 is a strong base. More then levels positioning has to be kept very light. If 11500 to 11640 is the zone onn downside then 11960 to 12100 is the upside zone for NIFTY. So a big range to play with. Out of control move possible only beyond these 600 points of range.

My Take on Reliance

Investors of RELIANCE INDUSTRIES should not be concerned after yesterdays selloff. Because if you hold it for long term then this is the zone to enter rather to exit. We saw RELIANCE moving up from 900 to 2300 since the month of April. So current fall should be utilized to enter if you missed the rally. If Law of Causation is considered then the reason of current fall has nothing to do with any reason which impacts the Business or its Growth in present as well as in Future.

Everyone on street is aware on the buzz on the week health of Mr. Mukesh Ambani everyone has their own unverified inputs in Media. But family so far has not provided any clarifications on this matter yet. The chairman has not visited the office since early september. Hopefully he gets fine if he is not well. But this should not be the reason to sell out your holdings. It’s just negative sentimentally the simillar velocity of negative sentiment in past were observed with INFY and ICICI BANK. And these stocks bounced sharply after reacting.

As far as levels are concerned from current levels it has to cross 1970 to stabilise and 2020 to give a breakout again. In early october I gave 2400 and 2490 targets on upside with supports in the zone of 2120 to 2150 it has been a sharp decline below these supports. Because I always prefer RELIANCE in cash i still holds it for higher targets. To protect from further correction need to purchase January OTM Put and leave it. There is a possiblity of test of 1680 to 1760 if it doesn’t stabilise here.

MARKET OUTLOOK And TIME CYCLE Dates for November

Intresting week for Markets. The week in which several questions would be answered and Financial Markets would have a greater clarity on political front in UNITED STATES. Because US is the mother market so it has to be closely watched specially around the presidential elections. This is the most important week for US Markets for this calender year. Once this event gets away Markets would be back to their basics.

Last week the markets in US were down around 5% and are up for a toss now. NIFTY so far has been resilient during the selloff in US. Firstly let understand the important levels on DOW and SPX. According to its pattern DOW has to break the zone of 27300 to 27500 for breakout until the targets of 28900 and 29800 directionally. If it fails to cross the zone of 27300 to 27500 it could test the levels of 24900 and 23600 in this month. For SPX the pattern is neutral still to gain strength it has to trade above 3400 to retest 3525 and the all time high of 3588. Still trading above 3636 is tough for it. If it manages to do so then 10% rally would be on offer for investors. A correction would continue as long as it stays below 3400 until the levels of 3130 and 3011. Note the higher degree breakdown would happen only below 2980 severe fall is expected below this level. NASDAQ is the strongest off all indices but still to neutralise the pattern it has to sustain above 11300. The level which should be referred for reference of strength and weekness.

Important levels to consider for NIFTY is 11800 on spot. Lot will depend on 11800 if it breaks then upside continues till 11960 and 12160 on spot positionally. But as I mentioned on Friday as well the key support is at 11470 for this cycle. A break below 11470 opens downside till 11350, 11216 and 11070 onn spot positionally. Any fall should be utilized for fresh purchases for investments. Because it’s only the matter of Time for NIFTY to test the highs of January. So a fall of 500 to 600 points from current levels doesn’t changes the over all texture of market for investors. For Traders the opportunities lies in mid caps for November specially the pockets of cement and consumption outside of NIFTY.

Coming to Time Cycle dates of November. Which comes on 2nd of Nov 4th of Nov 11th of Nov 20th of Nov 23rd of Nov and 30th of Nov 2020. All these dates are Natural Time Cycle Dates applicable on all Financial Markets. Specific time cycle dates would differ from these dates because they are calculated differently. All the mentioned dates are important but 3 dates are special dates which are 4th 20th and 23rd Nov because a dimensional vibration would be created on these dates.

Gann Price Time Analysis uses the principals of the Law of Vibration discovered by W D Gann. Hens the views published above should be considered forr educational purposes. Any trading positions taken with above reference has to be consulted with your Financial Advisor. Or after getting the basic idea of Gann Theory. Dont enter any trade without a proper strategy. Because majority off traders enter trade without any plan and management.

MARKET OUTLOOK

October is not over yet. Just enjoy the voletile swing of Markets. As I mentioned repeatedly about the impact of Time on prices. Till the end of this month. So far markets are finding tough to hold their ground specially the Markets in west of our planet. The Intresting point is the remarkable under performance of developed markets or the out performance of our markets. Whichever side we prefer it. Yes there are reasons with Western markets for decline. But their cycle is at a break away point.

As I suggested earlier as well until the event of Election doesn’t get away it wont make sense to create any large positions on Futures or Options. Though the view is positive but still would take very nominal risk and leave that Trade till next expiry. Until markets gets clarity it’s better to keep intraday or select stocks which have clear vibration pattern and hold them in cash. Nothing wrong in preserving our Trading Capital. Because we Must Trade to liv a better life we should not liv to trade. I still remember the action from 2016 so would use that experience this time.

Last time I shared on the undertone of market which so far is still positive. But the key zone is 11470 to 11500 on spot lot will depend on this range. If it holds we would test January highs in November and if it breaks the wait would get longer and a free fall is expected. Yesterday DOW broke the lows of September which is a cause of concerne. But NSDQ is still holding sep lows. The sep low on NIFTY is 10790 so understand the importance of 11470 to 11500 range. If you are a conservative Trader then avoid Trading till 2nd week of November. Because market would be voletile till 31st October due to Time Cycle. And we have Elections there after. These are intresting Times to be the part of Markets for all of us as Traders as well as Investors. Extraordinary lessons would be learnt during these time.

Disclaimer views expressed above are personal. And are Subject to change with time. Any Trades taken with reference to above Analysis has to be at your own risk. Trading in Financial markets is always subject to risk. So dont forget to consult your Financial advisor before taking any trades.