No matter what you call it locating stock market patterns entails nothing more than rational humans seeking to make sense of an irrational entity
Nifty: Bullish and Overxtended
1 USD = 61.85 INR
Banks have played a key role in driving markets up. Even SBI has joined the rally lately and looks set for all time high target of 350.
Bearish patterns rarely succeed in Bull market. Take Example of DLF. Despite all bad news: stock was up 7% yesterday and it has breached gap resistance and moving average resistance
Reliance Capital continues to give mixed signals. Is stock going up? #HellYeah :). There is news that Japanese life insurance firm, Nippon Life is hiking its stake in Reliance Capital Asset Management. The theory/news will fail if stock closes below 470
Rural Electrification is undergoing Bullish consolidation. It should eventually move up as long as it does not break down below 320
UPL near support: The stock has exhibited huge bullish characteristics this year. The stock is at important moving average support. Will it bounce? The ST crowd will get nervous if stock closes below 333.5
Ahmednagar Forgings: The stock has witnessed sharp correction this week. The stock is near support. Will buy the dip crowd save the stock?
Jet Airways = Technical Turnaround: Jet Airways stock has become technical buy because it has done two things: 1. It broke past 200 dma; and 2. It pulled back and bounced from 200 dma. Now as long as stock holds 200 dma of 240 - stock is likely to deliver strong return over next 6 month.
South Indian Bank At Support: Small Pvt sector banks are getting lots of interest after recent Kotak Bank acquisition of ING Vysya Bank. Will South Indian Bank rally from 200 dma?
Tata Sponge in Bull Market?: A Bull market stock is very attractive buy at 200 dma. Now Tata Sponge had a dream run earlier this year and post that stock has been in correction mode. The stock is now at 200 dma. Will Bulls find that attractive?
HCC finding feet: HCC seems to have found its support at 200 dma (double dip) and looks set for strong rally in days and weeks to come. Any close below 200 dma and this theory fails
Technical patterns are made to be broken. If this were not the case then you would never have to set a stop loss
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers