Indian Indices - Realize Truth, Ignore Noise (Don't Panic)
- Small Cap -
- Mid Cap -
- Metal -
- Nifty IT -
- Media -
- Realty -
- Nifty 50 -
- FMCG -
- Fin Service -
- Bank Nifty -
Whoa What a Day Today !!! A Full Day of Swing Left and Right to extreme levels.
Tell me honestly how many Youtube Channels, Telegram Channels, WhatsApp Groups, Expert Commentaries came today with atleast one of the below Warning Messages
- See I told you, Mid Cap and Small Cap are due for Correction and the Correction started today
- This is just the Beginning - more pain ahead
- Safeguard your Capital, Book SLs on Mid and Small Caps
- Book profits on your trading stocks, save capital for a market fall
- And what not......
For a Retail Investor - any of the above message will Translate Only into "Panic Selling" and nothing else. Its the prime duty of so called "Market Experts" to paint the right picture, convey the reality in right way without triggering Panic. Else - better to stay away from giving expert advice - because one Panic message completely Destroys any-and-all Profits a small retail trader would have gained for the past 1-2 months.
So, what's the point in giving advice which does not help anyone ??? Now let's review each Index what really happened.
The underlying force which controls the market is Support and Resistance. Whether its a Positive/Negative News or Politics or Profit Booking or FII Activity or US Treasury Bonds - eveything operates within the boundary of One-more Support & Resistances
1. Small Cap
The support levels were shared in our Telegram Channel last week itself. Look how exactly Small cap index tested and rejected from the Support at 16030. And how big is the wick ? Buyers showing strength lifting price up
2. Mid Cap
Once again 2 support levels - 48490 and 48050. One pushed the Wick up and Other was powerful enough to push the Candle Body itself up. Again, Good strength from buyers leading to a Huge Lower Wick
3. Metal
Nifty Metal index had the Biggest Fall among Nifty Peers. It had a Flag Pattern BO recently and did a BO-Retest today and found support from 2 levels in the flag (Flag Top and Flag Middle) and the support was strong enough to push the Price higher than the Flag top. So, Still Bullish....
4. Nifty IT
After finishing a Big Rounding Bottom on Weekly, it formed a smaller Rounding Bottom on Daily and after Breaking that as well - it came back to Retest the BO zone. See very clearly the BO zone providing the needed support for IT index. So, this is also in Bullish mode despite the Red candle
5. Media
Nifty Media formed a Bearish Double Top pattern on Weekly, but taking support at 2115 - look at the strong bounce. The big fall this week got negated by a Stronger Bullish Green candle. Amazing recovery. There are 3 back to back supports - 2115, 2050, followed by Parallel Channel Trendline around 1950 zone. Until all 3 are broken down - Media sector is BULLISH
6. Realty
Nifty Realty formed a Perfect Double Top pattern at 895, but took beautiful support at 875 finally ending up in a Perfect Hammer Pattern which is bullish reversal indicator
7. Nifty 50
I have been screaming of the support zones in Nifty at 21780, 21725 ever since Channels were cautioning about Big fall coming. Look how 21725 gave the push today. Both on Daily and Weekly scale - only Wick below the support levels. On Weekly - the price is comfortably above both support levels - yet people keep passing Panic Messages
8. FMCG
On weekly - its a Perfect Rounding Bottom BO followed by a perfect Retest. Finally the price did end ABOVE the BO zone
9. Fin Service
Fin Service formed a Gap between 20570 and 20255. The Cavity got Finally filled (as expected) multiple times and price took support form the Long term Parallel Channel Trendline for 2nd time. Strong bounce today - until price falls below 19910 and 19775 - sector is Bullish
10. Bank Nifty
The Leader among the Nifty Peers. Strong 620 points up. Same as Fin Nifty - Cavity Filling done and Support Taken from long term parallel Channel trendline
Folks - Now tell me - 10 Sectoral Indices have been reviewed here. Nothing Bearish. Yet there is ONLY noise in the entire market, all channels giving instructions to Book Profits, execute Stop Loss. Why ?
The Channel Admins, Big Players, Brokerages have so much funds to take on small SLs and rotate their funds, but for small Retail players - even a small SL will destroy their investable principal. Even if you are doing Swing Trading - why to book SLs when the stock is not going Bankrupt ? It will take few days to weeks for the same stocks to recover and you will repent for booking SLs there.
Before taking decision on SL booking - following instructions must be followed
- Wait for Weekly Close
- Check all your stocks to see how bad the support levels are broken
- Check where is the next support level
- Only when the next support level is too far down - take a conscious decision to book SLs. Else close your trading terminal and take some rest. market will do its magic recovery
Disclaimer:
Stocks-n-Trends is NOT a SEBI registered company. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi--timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions.
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