AAKASHAYA PATRA WEEKLY MARKET OVERVIEW: 26.09.2020

-

 

After enjoying a one way parabolic rise since March; Correction had become a necessity for the wellbeing of the Market. After breaching the steep Support Trend line two weeks back, the Correction intensified in the week gone by. Markets corrected this week, before finding Support at the 200dma. Interestingly, Friday saw a bounce-back from the 200dma which helped the Nifty close above the 11000 mark, but it does not signal an end to the Correction. The daily as well as weekly candlestick pattern suggests continuation of bearishness. Also the completion of Head & Shoulders pattern indicates bearish connotations in the near term. It has a bearish Target of Nifty 10588 and hence any upward price movement for a day or two will not negate the Bearish Head & Shoulders pattern.

.Technically Speaking:-    

Sensex opened the week at 38812, made a high of 38990, low of 36495 and closed the week at 37488. Thus it closed the week with a loss of 1357 points. At the same time the Nifty opened the week at 11503, made a high of 11535, low of 10790 and closed the week at 11050. Thus the Nifty closed the week with a loss of 454 points.

 On the daily charts, both the indices have formed a real white body candle. Last three days have formed a Downward Tasuki Gap which is a Bearish Continuation pattern. Also on the weekly timeframe, both Sensex and Nifty have formed a big Black body candle which can be categorised as Bearish Mat Hold pattern, with a small leniency that we have had two rest days instead of three. Thus daily as well as weekly candlestick pattern suggests a bearish bias in the near term.

This week, both the indices completed a Bearish Head & Shoulders pattern on the daily timeframe. This formation has a bearish Target at Sensex 35982 and Nifty 10588. The failure point will be a closing above the top of right shoulder which is at Sensex 39359 and Nifty 11618.

The Markets had moved very far away from the averages and a retest of the 200dma was on cards, which happened last week. After such a sharp fall for six straight days, a Pull-back was on the cards. It happened and the Nifty reclaimed the 11000 mark. Moving higher the indices can encounter Resistance in the form of Trend line (Sensex 38433 & Nifty 11239), which is also the Neckline of Bearish Head & Shoulders.

This week, Market breached the short term average of 20dma (Sensex - 38447 and Nifty - 11354) and even the medium term average of 50dma (Sensex - 38298 and Nifty - 11298), before taking Support at the long term average of 200dma (Sensex - 36565 and Nifty - 10757). Thus the Trend in the Short Term as well as Medium Term Timeframe has turned Bearish, whereas the Trend in the Long Term Timeframe continues to be Upwards.

MACD as well as Price ROC are both negative and continue in Sell mode. RSI (41) suggests Bearish momentum. Stochastic Oscillator %K (17) is above %D and hence in Buy mode. ADX (22) suggests Downtrend getting developed. Directional Indicators are in Sell mode as +DI went below -DI. MFI (49) suggests Negative Money Flow. OBV has started making lower top lower bottom. Bollinger Band has given a Sell signal on Tuesday when Nifty closed below the lower Bollinger

Band. Thus Oscillators are suggesting a Bearish bias.

Options data for October series indicate highest Call Open Interest at the strike of 11500. Highest Put build-up is at the strike of 10500. Thus Options data suggest a wide trading range with Resistance @ 11500 & Support @ 10500.


Comments

Post a Comment

Popular posts from this blog

AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 61 : 10.10.2020

-
Image
                           Financial Ratios- Liquidity Ratio As the name indicates, these financial ratios help us to evaluate the ability of the management to use its assets and manage its liabilities effectively. Commonly used Management Efficiency Ratios include –   1. Fixed Asset Turnover Ratio 2. Working Capital Turnover Ratio 3. Total Asset Turnover Ratio 4. Inventory Turnover Ratio 5. Inventory Number of Days 6. Receivables Turnover Ratio 7. Days of Sales Outstanding   Fixed Asset Turnover Ratio: The fixed-asset turnover ratio is the ratio of net sales to the fixed assets of the company. Fixed Asset Turnover Ratio = Net Sales / Average Net Fixed Assets This ratio is used to measure the operating performance of the company, i.e., how efficiently a company is producing sales with its machines and equipment. In general, a higher fixed-asset turnover ratio indicates that a company has more effectively utilized investment in fixed assets to generate revenue.A de
Read more
-
Image
16.06.2019 AAKASHAYA PATRA SEVEN STAR SMART EDUCATION SERIES PART – 12 : Stochastic Indicator Stochastic is known as one of the reliable leading indicator to forecast the Price Reversal or Swing Reversal, its also give an idea about stock over bought position as well as stock over sold position Stochastic Indicator does not follow price or volume but it follow momentum of the trend For ready reference, Formula of the Stochastic Indicator as below : % K = (Most Recent Closing Price - Lowest Low) / (Highest High - Lowest Low) × 100 %D = 3-day SMA of %K Lowest Low = lowest low of the specified time period Highest High = highest high of the specified time period There is a two line are available in stochastic indicator, %K Line known as fast line and %D is known as slow line %D is known as a slow line because its a SMA of %K Default setting is 14 period it means it consider recent last 14 persod data as per formula in calculation We can use this Stocha
Read more

AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT: 21.06.2020

-
Image
DOLLAR INDUSTRIES LTD CMP 137 ENTRY 135 TO 130 STOPLOSS 100 TARGET 300++ TIME: 36 MONTHS Dollar Industries Limited has become one of the leading brands in the hosiery sector with an enviable 15% market share and a significant percentage in textile exports of the total production in the Indian hosiery market. It has also made a noticeable presence across social media and e-commerce platforms. Dollar has extensively penetrated across 29 states in India. Not only that, its products have also gone beyond the boundaries of the country and has emerged as the highest selling Indian innerwear brand in the UAE and the Middle East, marking its presence in places like Oman, Basra, Jordan, Qatar, Kuwait, Bahrain, Yemen, Iraq, Myanmar, Nepal, Nigeria and U.A.E. Having fused its position in Gulf countries the company is now assertively looking at the rest of the world with collections that promise to delineate the string. Dollar Industries is the only hosiery and knitwear company in India c
Read more