Finding order in a confused market.......

Finding order in a confused market.....

Global Markets.

NASDAQ tops the weekly gainers among the global markets with 0.68 % gains, India comes third followed by UK with a 0.13% and 0.14% growth among both its indices SENSEX and NIFTY. As we are coming close the half year market this year and look back to find the best performing economies at this time. NASDAQ invariably stands first and has been doing so from the beginning, while Nifty which was following closely gave way in between but regains its strength to stay second. Nifty has so far gained 8.35% since January this year. The highest challenging market this week is the SHANGAI, looks like the challenges are to continue.

Currencies.

The Rupee has been on a consistent fall since March this year which brings exporters laurels as many have been reaping rich rewards from their businesses. The weekly chart of USDINR has been adding more strength to its already existing bullishness. An event of correction will be a wonderful opportunity to go long on the USDINR. But, for now it looks over valued at the top. With 12% above average volume on the weekly charts and a consistent 30% above average volumes on the daily charts for the past 3 trading sessions will keep the rally continuing for some time before any good weakness can set in. As of now, there is a bearish divergence getting retraced on the daily charts, once it is confirmed, short term traders can look for a short opportunity. Please be advised of the time frames that we are using here, weekly is bullish, and daily is retracing bearish divergence. So, it will be buying at the value zone on the daily charts and sell at the top of divergence confirmation in the lower time frames.

NIFTY for the coming week.

Having a marginal up close this week with a slightly improved volume support which was close to its average volumes, yet the NIFTY is in a non-trend zone and this would mean broad based range moves in the coming weeks. On the daily charts 5000-5200 will keep rolling, with indicators showing flat moves, one can only find opportunities to go long using 60 minute charts with directions from the daily. This is a pattern which give lesser opportunity while demands more effort in the trade selection process and even the best of selection not returning huge gains. Being so, we cannot be too choosy as we cannot predict which trade is going to give the best of returns this year. We have to trade all the signals, keep our stops closely monitored and take the first signs of weakness to exit and pocket our profits.

On the shorter time frames like intraday, traders have a chance to make merry as every trading session will give wonderful opportunities to close with a profit. In the past week, Monday, Tuesday and Thursday has given rich gains to traders.

Sectors

Oil Services and Distribution Industry tops the performance this week which brings up the Energy Sector as the leading weekly gainer. Almost all the PSU oil marketing companies have given a good rally this week, but none had any valuable entry options in them to trade a position. Healthcare follows second, Biotechnology Industry group is the leader here, KAVERI SEEDS and BIOCON have done well, and again there were no valuable trades in these stocks. Apart from these broad categories, among exchange indices infrastructure did well. HDIL has recorded good gains of about 10.16% this week, Otherwise there have not been any good promising moves coming up this season.

Institutional positions.

It was a mixed bag of movements this week on the institutional participation front. FII’s were even this week with a marginal 7.18 Crore positive contribution. Whereas Domestic Institutions on their part were net sellers to the tune of 231.10 crores. Activity in this space have been marginalized in the past few days, seems like even the big timers are in holiday mood at present. In the markets there are three types of positions, going long, being short and go for fishing. It seems that the present situation calls for fishing.

Trading is an activity which is boring at times. From the beginning of this year we have had two cycles of bullish moves coming in the markets, the first one did manage to give some reasonable gains, while turning down faster on many stocks. The second round that is in progress now is not very strong on many stocks. Many good signals have failed to garner support and move ahead. Thus, giving small losses to the trading accounts. By trading all the signals that your system churns out, you will on a natural process be in the best stocks and getting out of those that are non-performers. Going through this process is a wonderful journey. At times it is a challenging one, like the one that we are traversing now. We would not know which stock or trade is going to be the best performer, though we do a lot of filtering in the process of selecting them. Among the selected stocks lies hidden the best gems, to bring them out we have to trade into all the signals, get out of the ones that are not performing as we intend them to, then you have a list a multibaggers which will generate the returns that will take care of the losses and manage to keep the account positive.

Have a great trading week.

“I believe you can get everything in life you want if you will just help enough other people get what they want.’ -Zig Ziglar.

Fulfilling financial dreams of traders is the vision of STOCK SUPERMARKET.

Team Bravisa.