The market takes a breather move after the long weekend; ends the day with the loss of 1% on Nifty to settle at 17,117.

The rally from 15,671 to 17,344 may take a pause on Nifty as it forms the bearish engulfing at 78.60% Fibonacci retracement of 17,794 to 15,671 at 17,350.

Traders can expect some more dips to 16,976-16,850 to fill the gap, test 200DMA and retest the neckline at inverted head and shoulder. Also, the 45-degree trendline support is placed at 16,846 which may act support for bulls.

Relative Strength Index (RSI) indicates the bulls are in control of the momentum as the moves above the previous swing levels of 50-53.

Brijesh Bhatia
Research Analyst, Fast Profit Report

Nifty - Confluence of support @ 16,845-17,000 zone

Nifty rallied over 10% from the low of 15,671 to 17,350. The bearish candlestick pattern is visible right at 61.80% Fibonacci retracement of 18,350-15,671 at 17,350.

Is it an end to the bullish move?

The answer is NO!

On weekly chart, the momentum is still bullish but looking at the hourly chart, the bulls may get confidence to buy the dips.

On hourly chart above, the bullish pattern is visible on chart within the gap area.

1. Bullish Reciprocal AB=CD (black)
2. Bullish Head & Shoulder (magenta)
3. The gap area of 16,987-17,203 (red lines)
4. The gap area of 17,027-16,606 (green lines)
5. 34HEMA - Hourly Exponential Moving Average (orange)
6. Bullish reversal on RSI (blue lines)

The hourly structure indicates the buying opportunity within the 16,850-17,027 zone. The setup negates on the close below 16,781.

#KeepItSimple

Come-on Bulls.....Nifty up by 200+ points 📈📈

Wohoo! Nifty 400+ points up 📈📈

Pharma Index - to be on the mend

Pharma index is underperforming Nifty since September 2020 after the new normal.

Even after hitting the new high in October 2021, pharma index underperformed and witnessed the death cross in early 2022.

Death cross in technical analysis happens when short-term moving average (50days) crosses below long-term moving average (200days) and termed as negative trend.

The recent momentum in pharma index witness the recovery of ~12% from the lows and approaching the resistance zone.

Can Sunpharma & Cipla take Pharma index higher?

Sunpharma and Cipla weighs around 32% and are trading at 52weeks high which is likely to break index higher.

The trendline resistance (black) is placed at 13,800 and 200DMA at 13,900 which can be hurdle for bulls. Additionally, 14,00 will also act as psychological level.

The close above 14.000 levels can witness the fast and furious bullish momentum and can be the best trading sector for next few weeks.
(CMP-13,700)

#KeepItSimple

US10Y Bond Yield @ 40yrs Resistance

US10Y bond yield rallied over 100% from 1.127% to 2.417% in last 7 months in anticipation of rate hike.

In the recent Fed meet, Jerome Powel hiked the rate for the first time since 2018.

Since 1981, the US10Y bond yield is trending with lower high - lower low structure which is bearish as per Dow Theory.

The yield is now approaching the 40years falling trendline resistance which is placed at 2.90%.

Generally, the rising bond yield have an inverse correlation on equities but that is not the case in the recent momentum as both, the equities and yield are rising.

If the yield breaks 2.90-3% and sustains, which will be the multi-year breakout,will certainly put pressure on equities. But, if the yield reverses, the equities will rise at faster pace as they are into the bullish momentum.

S&P500 (SPX) was under pressure for past few weeks has closed above its long-term moving average (200days) yesterday. It means the bulls are back on Wall Street.

#KeepItSimple

Nifty - dip, an Opportunity for Bulls

Index opens with gap down and reversed sharply from the multiple harmonic pattern levels.

On short-term chart of Nifty, the multiple bullish harmonic reversal pattern are visible with potential reversal zone at 17,082-17,107.

1. Bullish Gartley (Blue)
2. Bullish AB=CD (Black)
3. 200EMA (Orange)
4. Gap support area (Green parallel lines)

Additionally, the higher low structure indicates the bulls are in control above 17,000 levels.

As we have weekly expiry today, can bulls manage to close the day above 17,350?

The hurdle for intraday traders is in the zone of 17,195-17,245; once taken out, expect the momentum towards 17,335-17,385 zone.

#KeepItSimple

Kotak Bank - Should you buy after the block deal?

Canada Pension Plan Investment Board sold its stake of 1.41% to 2.02% via bulk deal today in Kotak Bank and the stock is trading at Rs.1,720 down by ~3% at 10:45am IST on NSE.

Should you buy the dip?

As an investor, I am not convinced with the technical chart structure.

The stock has been one of the major underperformer against Bank Nifty since 2020 lows.

Since start of 2021, the stock has been trading in the broader range of Rs.1,650-Rs.2,100 and trading around the lower band of range now.

Technically, the death cross is visible on chart at Rs.1,850 signalling an end of bullish trend in the stock. The death cross happens when 50DMA crosses below 200DMA.

In the above chart, the multiple supports are visible in the range of Rs.1,640-1,750 but that doesn't convince the buying opportunity.

As technical pattern, the bullish confirmation will be above 1,855 while the close below 1,640 will confirm the bearish scenario.

#KeepItSimple

Indian Stocks riding an Asian Wave 📈📈

Video covers the chart pattern and views on:
#Nifty - India
#DowJones - US
#Nikkei225 - Japan
#StraitsTimes - Singapore
#Kospi - South Korea
#HangSeng - Hong Kong
#Sensex vs MSCI Emerging Market Index

https://www.youtube.com/watch?v=-JRok6kG0bY&t=17s

Do comment your view.

Investing is not an easy task. Most investors get carried away with herd mentality and buy the shares irrespective of whether it fits their criteria.

Valuations play a key role in fundamental analysis, but you buy first and then when you are stuck, you blame valuations.

Are you going through the same in Zomato and PayTM?

Well, I am not the expert on fundamentals who looks at valuations and reads long balance sheets. But my colleague at Equitymaster posted an impressive article which will enhance your understanding of fundamentals.

You can read his articles here https://t.me/AcceleratedProfits/33

The index is trading in a range on weekly expiry day. It was all about Reliance Industries and metal stocks on D-street. Nifty ended at 17,222 losing 0.13%.

Multiple bullish harmonic patterns like Gartley and AB=CD are visible on short-term chart of Nifty. Watch chart here https://t.me/FastProfitsReport/458

On the hourly chart, we are witnessing a golden cross (50EMA over 200EMA) for the first time since the last week of January 2022. This indicates the bulls are in control of the short-term trend.

The gap support at 16,987 and the psychological level at 17,000 will be an excellent risk-reward opportunity for bulls.

As we step into the monthly expiry, the 17,000PE writers will come into action and add another layer of support for the bulls.

Asian indices are outperforming and Indian markets are likely to rise higher. Watch the technical analysis on Asian stock indices in the video here https://www.youtube.com/watch?v=-JRok6kG0bY

Brijesh Bhatia
Research Analyst, Fast Profit Report

Bank Nifty - Stuck between the Canals

Bank Nifty has been underperforming against Nifty since the start of February 2022.

While Nifty is trading above the 23rd Feb gap area (3% gap-down), Bank Nifty is struggling to cross the gap of 36,700-37,400.

As most of the opening in last couple of months are with gap, the recent gap-up 35,000-35,400 is not acting as support area for bulls.

As Bank Nifty trades between the two canals, it will continue to underperform against Nifty.

Intraday traders can look for longs at support and book at resistance but the real game begins on the break of 35,000 or 37,500; till than it's ping-pong for traders.

The positive reversal on RSI signals the bullish momentum till 35,300 is held in the recent momentum.

#KeepItSimple

Index trades in the broader range after the bullish momentum last week; Nifty ends at 17,153 losing 0.4% for the week.

The technical setup is bullish as far as 16,846-17,050 zone is held by bulls. Watch chart here https://t.me/FastProfitsReport/458

As we step into monthly expiry week, the Midcap index witness the long buildup in futures while Bank Nifty PCR trading around 0.65 may witness some short covering rally towards 37,000-37,500 levels.

Technically, Bank Nifty is trading between the canals and support lies at 35,000-35,300 zone. Watch chart here https://t.me/FastProfitsReport/466

Brijesh Bhatia
Editor, Fast Profit Report

S&P500 #SPX over 300++pts or 7+% up from the reversal pattern.

#USmarkets #Trading #equity
#KeepItSimple

Pharma Index - Alive and Kicking

Pharma index is underperforming Nifty since September 2020 after the new normal.

We highlighted in our previous note, the break above 14.000 will take index higher, but it is trading in the range of 13,300-13,700 so far. Watch note here https://t.me/FastProfitsReport/456

Pharma Index/Nifty50 at Reversal Level

As pharma index is struggling to cross 14K level, the ratio chart of Nifty Pharma/Nifty50 indicates the recovery in health for Pharma index.

The Bullish Gartley harmonic reversal pattern is visible on weekly chart and an outperformance of Pharma index over Nifty in past few weeks confirms the reversal.

The positive crossover of averages in oversold zone on MACD signs a healthy structure for Pharma Index.

Who can lead Pharma Index?

Sun Pharma and Cipla are trading at 52W highs while Divis Lab, LaurasLab & Auro Phr witness an uptick in outperformance against Pharma Index recently.

On cross of 14000, pharma index will be in a sweet spot for investors.

#KeepItSimple

My colleague Richa Agarwal recently posted a Youtube video on Optionality- Finding the Next Infoedge. Optionality is generated from an investment which has the potential to give huge returns, but the quantum of it cannot be ascertained. One can arrive at a fair value only over a period of time. Not to mention that such investments come with their fair share of risks. To know more about the opportunities, watch the video here.

https://t.me/IndiaRevival/108

The market reversed in the second half of the day; Nifty hold 17,000 and closes at 17,222 gaining 0.40%.

The gap area and 200DEMA (17,043) is the hurdle for bears; the move above 17,301 will confirm the bullish breakout from diamond pattern.

As highlighted in Friday’s note, Bank Nifty PCR was 0.65 and short covering rally can be on cards – **here we go, it was up by 0.85%**.

Trader’s can expect the momentum in Bank Nifty towards 36,400-36,800 levels in the expiry week.

Brijesh Bhatia
Editor, Fast Profits Report

SmallCap Index - The Death Cross

Small Cap index had outperformed against the Nifty in 2020 as well as 2021. Since the start of 2022, it is underperforming and witnessed the death cross on Small Cap Index daily chart.

The death cross is the market chart pattern reflecting the bearish trend as the short-term moving average (50DMA) crosses below the long-term moving average (200DMA).

In the above Smallcap index chart, the death cross happened after 2 years.

Historically, this is the sixth time in last 10yrs and it has failed only once. In the previous five death cross, index has corrected between 14-30%.

The broader market index (Nifty500) is still trending bullish;, the failure can be the probability till 9,500 is not broken on Small Cap index.

#KeepItSimple

Profit from Unlisted Stocks

Retail investors are always keen to understand how these biggies invest in unlisted stocks and make money.

If you are interested in knowing, watch this video shared by my colleague at Equitymaster, Tanushree Banerjee.

https://t.me/IndiaRevival/111