Key points for the week (India Markets): Coronavirus pandemic is ruling all the global markets, taking the world into recession that is likely to last for a while After a little bear market rally in the preceding week, #NIFTY drifted sideways during the week NIFTY closed the week lower, signaling further move downwards is possible Global agencies (Fitch, Moody’s) cut India’s growth forecast for 2020-21 below 3% Long term buyers are optimistic thinking it could be lifetime opportunity now, but caution must be observed as we may not have hit the bottom yet Right now, Coronavirus pandemic is ru ..read more

Key points for the week: Markets globally were completely consumed by Coronavirus Pandemic, and continued freefall. #NIFTY had a small rally on Friday, but it appears to be a bear market (short covering) rally, and is not likely to last. While India observed ‘Janta Curfew’ on 22nd March, many states and districts have called for lockdown until 31st March. It’s economic burden is yet to be assessed, but is expected to be at least several hundreds of billions of dollars. India FM is expected to announce economic package for Coronavirus impact Every week the market has been crashing further, ma ..read more

Key points for the week: #NIFTY hit a two year low of 8555 on Friday 13th March, before it hit circuit breaker, but the market rallied 1680 points after trading resumed, posting largest intraday move ever Market failed to follow through on that momentum on Monday, signaling that weakness is here to stay #Coronavirus Pandemic fears weigh on global economies after most countries are shutting borders, and businesses have suffered Many countries including US have declared emergency, and central banks have reduced interest rates – further adding to concerns over recovery The price action of previ ..read more

Key points for the week: The weekly drop in NIFTY and BANKNIFTY that we experienced during the week was reminiscent of the 2008 market crash Crash in Indian markets was much lower during the week compared to leading Global indices. While the weekly losses in S&P 500 and DAX were 11.5% and 12.4%, that in NIFTY was near 7.25% The rapid increase in Coronavirus infected patients outside China – especially in Europe, US and Korea triggered panic wave across the globe The downward momentum is very strong, and many markets may extend losses further. We may see a short corrective rally before the ..read more

Key points for the week (US Markets): Concerns over economic impact of Coronavirus epidemic are weighing on the market As the Chinese outbreak has impacted the manufacturing base in China, the global markets are anxious about overall slowdown going forward After leading Asian economies such as China, Korea and Japan, the virus now is spreading in Italy, adding to the fears that the outbreak is going global As most of the European markets traded more than 3% lower on Monday morning, that will have an effect on American markets at the opening on Monday The fear of coronavirus breakout beyond C ..read more

Key points for the week (India Markets): The markets – #NIFTY and #BANKNIFTY – initiated move to the downside from the identified supply areas, as was highlighted in last week’s bulletin Throughout the week, market showed signs of weakness. Following weekly options expiry on 13th the weakness increased both in NIFTY and BANKNIFTY The concerning economic numbers such as widened trade deficit (Actual $15.17B vs Expected $11.1B) and increased wholesale inflation (six years high of Actual 3.1% vs Expected 2.8% ) will have effect on market move during the week As expected, NIFTY slowed down and c ..read more

Key points for the week (US Markets): In spite of recent fears from Corona Virus and slowdown in global trade, the US market remains strong SPY (S&P 500), DIA (Dow Jones Industrial Average) and QQQ (NASDAQ100) – all are rising in a parallel channel While the indices are approaching top wall of the respective channels, we may expect a small pullback, but there is nothing to suggest any weakness in the big picture Better than expected jobs data as well as declining bond yields and oil prices are expected to help stock markets continue its trend All the key indices in the US markets – S& ..read more

Key points for the week (Indian Markets): As anticipated in last week’s bulletin, the markets – NIFTY and BANKNIFTY rallied from the highlighted demand area During the week the markets wiped out the losses from previous week that happened as a reaction to Coronavirus fears and disappointing annual budget NIFTY has hit the daily demand area from where the pre-budget drop originated, while BANKNIFTY is close to higher demand area, which are multiple confluence points The RBI interests were kept unchanged as expected, given the inflation weighs on economy. However the market is skeptical of RBI ..read more

Key points for the week (India Markets): The disappointing budget presented on Saturday, 1st February damaged investors’, common taxpayers’ and industry’s confidence to take NIFTY down by 300 points. Coronavirus played its part during the week to take the market down owing to China’s growth concerns. The weakness in all global markets weighs on Indian markets too as a lot of trade and business activities are expected to slow down. In #NIFTY and #BANKNIFTY we now have a convincing structural failure on daily time-frame. In weekly time-frame the two indices are testing the bottom of parallel c ..read more

A pullback on weekly uptrend, entering in a daily demand area. Reliance has a long setup on daily chart DAILY PRICE CHART RELIANCE INDUSTRIES On weekly timeframe, current price appears testing 20 SMA in a strong uptrend. Trade Setup Considered: RELIANCE @ 1470 Entry @1477. The precise entry may vary. One may buy on an intraday (15m) pullback after the price leaves the demand area, when it drops to demand zone, but in that case the trader may miss the trade if the stock does not fall back to ideal buy point. Stop @1452. Stops should be trailed using 2H chart to move stops higher as the stock p ..read more