Nifty:
Despite lower closing on Friday, the Index managed to keep its head above water.
As we see on the above weekly chart of Nifty, the index is still in positive territory. Stockhastic and UO are definately on weaker side, but, MACD and Negative Volume Indicator are still in positive zone.
The Cup and Handle pattern on the Weekly chart is intact and still the weekly closing break-out of 6350 and above is on cards. Until, the Index breaches major averages, which as of now are placed at 6115 on weekly closing bases, the trend is considered to be positive.
For Momentum trading:
As we see on the 1 hr chart, the support can be seen at 6242 which is the lower end of Ichimoku cloud. On upside, crossing 6300 may bring fresh move.
Banknifty:
On weekly basis, 10800 is very important support. Until Banknifty spot breaches this level, the uptrend is assumed to be in continuation. On the upside, 11100 is a hurdle. The weekly charts of ICICI Bank, HDFC Bank and Axis Bank suggest the element of surprise in Banknifty.
ICICI Bank which closed at 1058, has a strong support at 1028. Axis Bank has a strong support at 1141 and HDFC Bank is having support at 666. Out of these three private Banks, ICICI remains the top bet for the FIIs. But, trading purpose HDFC Bank is the best bet.
Markets reacting Political news:
Banking, Telecom, Oil and Gas, Finance, Fertilizer - except IT and Pharma all sector are affected by Political changes. If a Telecom company applies for a 3G circle, the stock is hit badly. If a mining company has started doing better, the Government demands dividend or start selling the stake. For NBFCs, the RBI suddenly comes with guidelines about Debt-recharging. But, overall, such moves are better for long-run.
Many of the liquid stocks which were people's favorite during last bull-run are at 3 year, 5 year and in many cases at 8 years' low and the Index is at the life-time high. The stocks which are doing well are most competitive companies. Companies which continued their advances and growth during higher inflation period. HDFC, HDFC Bank, Cipla, Colpal, HCL Tech, TCS are a few such companies.
Equity business : overall
"On the top of the bull market, the business expands and on the bottom of bear market, scam surfaces."
That's the principle of mas-psychology. We had an NSEL scam and Nifty tested 5100. (On the bottom of bear market scam surfaced). The next question is "Is brokerage business expanding?"
Despite lower closing on Friday, the Index managed to keep its head above water.
As we see on the above weekly chart of Nifty, the index is still in positive territory. Stockhastic and UO are definately on weaker side, but, MACD and Negative Volume Indicator are still in positive zone.
The Cup and Handle pattern on the Weekly chart is intact and still the weekly closing break-out of 6350 and above is on cards. Until, the Index breaches major averages, which as of now are placed at 6115 on weekly closing bases, the trend is considered to be positive.
For Momentum trading:
As we see on the 1 hr chart, the support can be seen at 6242 which is the lower end of Ichimoku cloud. On upside, crossing 6300 may bring fresh move.
Banknifty:
On weekly basis, 10800 is very important support. Until Banknifty spot breaches this level, the uptrend is assumed to be in continuation. On the upside, 11100 is a hurdle. The weekly charts of ICICI Bank, HDFC Bank and Axis Bank suggest the element of surprise in Banknifty.
ICICI Bank which closed at 1058, has a strong support at 1028. Axis Bank has a strong support at 1141 and HDFC Bank is having support at 666. Out of these three private Banks, ICICI remains the top bet for the FIIs. But, trading purpose HDFC Bank is the best bet.
Markets reacting Political news:
Banking, Telecom, Oil and Gas, Finance, Fertilizer - except IT and Pharma all sector are affected by Political changes. If a Telecom company applies for a 3G circle, the stock is hit badly. If a mining company has started doing better, the Government demands dividend or start selling the stake. For NBFCs, the RBI suddenly comes with guidelines about Debt-recharging. But, overall, such moves are better for long-run.
Many of the liquid stocks which were people's favorite during last bull-run are at 3 year, 5 year and in many cases at 8 years' low and the Index is at the life-time high. The stocks which are doing well are most competitive companies. Companies which continued their advances and growth during higher inflation period. HDFC, HDFC Bank, Cipla, Colpal, HCL Tech, TCS are a few such companies.
Equity business : overall
"On the top of the bull market, the business expands and on the bottom of bear market, scam surfaces."
That's the principle of mas-psychology. We had an NSEL scam and Nifty tested 5100. (On the bottom of bear market scam surfaced). The next question is "Is brokerage business expanding?"
