Markets are confused.....take some cues.

Global perspective.

Nifty comes a close second in the global indices order followed by NASDAQ, both have above 8% growth for this year since jan’12. For the week, it was Hang Seng that has performed great with a 3.95% gain in its index value. The under-performing global markets are UK and Australia.The Global markets closing positive for the weekend gives us the direction that the market is bound to give another round of bullish moves before any weakness should set in. Overall it is a confusing state for the index this week, so leave the index aside for this week and find trades in individual stocks for a good winning trade.

What's in the Nifty this week?

Nifty has been in non-trend since 5 months now, averages has gone flat indicating the non-trend to continue. Weekly closing in Green Impulse gives direction to trade long or stay on the sideline. The daily chart of Nifty has retraced a minor bearish divergence with a close in Green impulse, not the right place to trade long. So, on the daily there is no likeliness of a trade this week. Trendiness of the index based on the direction of its stocks is 10 Stocks trending bullish, 10 stocks trending bearish and 24 stocks in non-trend. 48% of the index constituents are in non-trend with its bias favoring the bears.

Institutional market wrap:

Institutional operations show foreign players gaining by being invested to the tune of 735.40 Crores, while the Domestic players have sold 677.98 Crores worth of stocks this week. Positive FII flow, does this indicate the market is going to move up or have they made a wrong decision. Though it cannot be predicted at the moment, there are possibilities that a best informed group can also be wrong at times. At presents it looks like the domestic players are taking a safe bet.

New High New Lows Index: 

On the weekly, the number of stocks reaching for new lows are declining as weeks pass by, but yet to move into positive zone. On the daily charts, with the NIFTY closing at its highest in the current bull phase, the NH-NL index has retraced a bearish divergence. In all likeliness, the Nifty will turn down any time now. To support this possibility the hour chart of Nifty has retraced multiple bearish divergence, on Thursday the index turned down adding strength to bearishness, but pulled up on Friday. When a super strong indicator like the MACD Histogram fails, it is an indication that something is brewing strong underneath to support the move. As the daily chart has closed with a Green impulse on Friday, we are not allowed to short the current market; we can either go long or stay aside.

Sectors this week:

On the sectoral side, FMCG tops with a 3.19% gain in its index value lead by MCDOWELL-N, UBL, HINDUNILVR & ITC, but none of the stocks have a trending chart. Off late FMCG has become a fishy sector. FMCG is followed by IT on the sectoral leaders for this week. The leaders here are TULIP and INFY, TULIPdeserves to be the top performer this week with a gain of 18.78% and it has made it in a smooth fashion. An impulse trade that went long at 78.90 and followed by a trend trade that went long at 82.75, both is yet to give any weakness in them.

Some snippets to be successful:

Here we would like to state a pattern in which the market moves time and again. When a market goes into a bearish phase, the first buy signals come after a bullish divergence on the higher time frame in the Impulse system, as the trade progresses to gain strength a trend reversal trade comes through. The impulse trade gets its exit on the first weakness, hence taking the cream of a rally and gets out, while the trend trade continues to be long as long as the trend exists. When the trend trade gets its exit, the market gives another opportunity to trade long on a pullback signal. After this pull back there is a chance for another trend long. The pull back trade takes the first weakness exit, while the trend trade continues for the direction of the market to change. This is the continuous pattern that any stock goes through when it has a good pattern on its charts. Any failure in mid way is an indication that the stock is not behaving as it should. At present in the markets, we have had lots of long trades on the trend signal, while there was lesser number of impulse longs. This was a first indication that all is not well in the markets for now. For that matter we cannot be choosy and time the market, there are possibilities for a market to go into a trend without any strength to begin with.

If we have a trading system that intends to take entry into a market when it is beginning its move to take advantage of any good trade, we have to trade all the signals generated by the system. We cannot predict which trade will be a winner and which will be a loser. Money management and position sizing will take care of the winning part, our work is to trade the system generated signals.

To ensure that you have minimum number of losing which goes further to lose marginally when the market is not in favor of our trading system, tracking a handful of stocks, getting to know them more closely will help us understand their patterns and trade accordingly. If we do it with passion stocks will talk to us, keep us informed as to what they are going to do in future. This is called intuition, and there are proofs of people having experience speaking to the plants and other living and non-living entities. It was possible because of their love and passion on the work they were doing.

The launch of Stock Supermarket:

To give every stock market aspirant an enchanting experience of financial freedom through investing and trading, we are launching our revolutionary trading system with complete trading recommendations, discipline of position sizing and money management along with record keeping all online with minimum effort required by the user to fulfill his/her financial dreams.

To make this world a peaceful and harmonious place to live by giving every individual an additional income through stock market investing is the vision of the StockSupermarket. Approach the markets with a commitment, a concrete decision that you will achieve success, instead of doing it as ‘let me try if I can succeed’ or ‘if I can be successful’ or ‘I may get an opportunity to make it big’, you will be successful. When you will, you will.

The Stock Supermarket website will go on review mode shortly, for users to experience the features and share their views and opinions, to make the stock market journey an even more enchanting experience to the traders, beyond what we have offered on the site through our insights.

With investment ideas, we sell happy dreams.

Have a great trading week with amazing profits. Team BraViSa.