Smallcap Stocks Set to Lead the Market

What do the charts say about smallcaps? Find out...

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The US benchmark stock indices experienced an increase as inflation dropped to 4%, reaching its lowest level since March 2021. The Dow Jones rose by 0.43%, while the S&P 500 saw a gain of 0.69%.

The S&P 500 reached a 52-week high, with a breakout at 4,335, signalling the potential for further gains towards the 4,550-4,600 levels.

The SGX Nifty suggests a positive opening of 50 points, indicating a favourable start to the trading day. The Nifty (spot) is poised to surpass the hurdle of 18,777 and has the potential to reach a new all-time high. Chart here

Bank Nifty is currently trending within the range of 43,700 to 44,500, and a breakout in either direction has the potential to accelerate the momentum.

The momentum in midcap and smallcap stocks are overshadowing the performance of large-cap stocks. Traders are not concerned about the Nifty index as they are making significant profits in midcap and smallcap stocks.

I have shared my perspective on the Nifty Small Cap Index. Watch here

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Reverberating Resurgence: Nifty Metal Index🚀

The Nifty Metal index has successfully surged ahead, smashing through the previous resistance zone marked by red horizontal trendlines and crossing above the 200DEMA.

The breakthrough has rejuvenated the market sentiment, signalling a potential uptrend for metal stocks. 💪💼

Traders should focus on metal stocks, as this bullish move may present exciting opportunities for profitable trades. 💰

#NiftyMetal
#KeepItSimple

The Dow Jones experienced a bearish trend, closing below 34,000 and forming an Evening-Star candlestick pattern, indicating a potential reversal. Meanwhile, the S&P500 retested the breakout level at 4,335 and managed to close marginally in the green.

Nifty is currently facing resistance within the crucial range of 18777-18887, exhibiting a lackluster momentum. The hourly chart reveals a bearish harmonic pattern, suggesting a bearish outlook. However, the bearish harmonic pattern will be invalidated if there is a break above the 18800 level.

The BankNifty bulls are currently experiencing a loss of momentum as they approach all-time highs within the range of 44000-44100. A breakdown may be confirmed if the key level of 43700 is breached. Interestingly, a fractal pattern reminiscent of the structure observed between December 2019 and January 2020 is evident, and the outcome of that period is well-known in market history.

SGXNifty indicates a flat to negative opening around 18,800.

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Nifty reacting to Bearish Harmonic pattern on hourly chart 📈📉

The US markets surged by over one percent, with the S&P500 reaching a 52-week high.

Nifty crossed the barrier of 18,777, trapping the bulls, as a bearish harmonic pattern on the hourly chart caused the index to dip over 100 points from its peak. The bearish engulfing pattern at the high point of 18,800 acts as a hurdle for the bulls.
Despite Nifty showing a bullish trend with a lower high and lower low structure, the time cycle theory suggests that the fall will continue until yesterday's high is breached.

BankNifty experienced the highest degree of underperformance among sectorial indices, declining by 1.24%. Both the Private Bank Index and PSU Bank Index encountered breakdowns on their respective charts.
The ascent of BankNifty towards the 43,700-43,800 range could present an opportunity for bearish traders, while a break below 43,375 would intensify the bearish sentiment, targeting the 42,900-42,500 zone.

SGX Nifty is signalling a gap up of 40 points at 18,800.

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BankNifty Futures - Opportunity for Bears 🐻

BankNifty Futures witnessed a notable rise in the first 30mins of the day, presenting a potential opportunity for the bears. The index is expected to retest the breakdown level at the 43,800-44,000 zone, indicating a selling zone.

Additionally, it is crucial to note that the 200-Hourly Exponential Moving Average (HEMA) is currently positioned at 43,825. The recent break below this moving average after a span of 76 days suggests a potential reversal in the short-term trend.

Considering these factors, it is an opportune time for bearish traders to closely monitor the BankNifty Futures. The retest of the breakdown level and the breach of the 200HEMA indicate a favourable environment for potential short positions.

In the upcoming trading sessions, the level of 43,375 may act as a support.

The strategy for bears can involve looking for short positions in Bank Nifty Futures or purchasing put options on the index.

Happy trading!

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The SPX reached a new 52-week high and experienced a breakout on the weekly chart, while the Dow Jones is on the cusp of breaking out from a bullish head and shoulders pattern above 34,800.

Indian markets are closely aligned with the US markets, as the Nifty is just a step away from reaching a new all-time high.

During the recent rally, banking stocks have shown lackluster performance, while the energy, auto, and pharmaceutical sectors have emerged as driving forces, fueling the momentum for the Nifty.

Traders should focus on pharma stocks this week. Additionally if Nasdaq trades positive, there is a possibility of IT stocks experiencing a short-covering rally by the expiry date.

On the Nifty, the current trend is controlled by the bulls, suggesting a potential move towards the 19,000 mark. The key trend change level is 18,456, and until that is breached, it is advisable a "buy on dips" strategy.

BankNifty is expected to experience selling pressure in the range of 44,000-44,200.

#SGXNifty
#PreMarket

Bank Nifty: Hourly Chart 🐻

The Bank Nifty hourly chart is currently favouring the bears, indicating that they have gained an upper hand in the market.

The recent breakdown of the trendline (marked in green), followed by a retest and the subsequent resumption of bearish momentum, serves as a clear signal of the bearish sentiment prevailing in the market.

Additionally, a breakdown, retest, and resumption of a triangle pattern (marked in red) further strengthens the bearish case. This development acts as an "icing on the cake," reinforcing the dominance of the bears.

Considering these factors, approach the Bank Nifty with caution and consider bearish strategies in your trading decisions.

Happy trading! 📉🐻

The US markets remained closed yesterday; however, the DAX started the week by opening one percent down after reaching an all-time high (ATH) last week.

As Nifty reached a high of 18881, falling just 6 points short of its all-time high (ATH) of 18887, some bears might perceive this as an opportunity to take advantage of the market.

The presence of multiple bearish harmonic patterns combined with the rising channel resistance suggests a potential reversal signal in Nifty. If the support level at 18643 is broken, it may indicate a short-term peak for the next 30 to 45 days.

BankNifty is exhibiting signs of fatigue, indicating the distribution phase according to Wyckoff theory. If the break of the Selling On Weakness (SOW) level at 43375 occurs, it may intensify the momentum and potentially drive BankNifty towards the 42400-41900 levels.

#SGXNifty
#PreMarket

Nifty and BankNifty at Crucial Do-or-Die Levels 🔔

Nifty is currently trading near a critical support level represented by a rising trendline. This support level is of utmost significance as it has been holding up the market's upward trajectory. However, caution is warranted as a break below 18,630 could potentially signal a short-term top formation.

Bank Nifty, the banking sector index, is currently hovering around a major support zone at 43,390. This zone has historically proven to be a significant level, influencing market sentiment and direction. If the support zone is breached, we may witness an acceleration of bearish momentum in the market.

It's essential for traders and investors to stay alert and carefully observe price movements in these key indices. The outcome of these crucial levels will likely shape the near-term market direction.

Keep a close eye on Nifty's rising trendline support at 18,630 and Bank Nifty’s support zone at 43,390.

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#BankNifty

Nifty and Bank Nifty turning from the Support Zone 📈

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Fast Profits Daily - Nifty Bulls Stumble: Is the Rally Running Out of Steam?

Should traders be nervous in the market now? Find out…

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