SENSEX trade ideas
SENSEX Approaching a strong support levelFor now, short SENSEX is not a wise strategy. It is approaching a strong support level. RSI is around 50, means the market is not stable and waiting for a clear path. INDA ind NASDAQ:INDY
Indian market meltdownWe are in the 5th elliot wave zone in India. The global economy(NASDAQ, DJ, DAX) is also at an all time high mostly driven by the tech-sector but there are a few cues which hint a pullback.
1. Failing energy sector: in the past few years thermal and nuclear power plants have seen huge investments but these are facing challenges from the renewable energy sector (wind, solar) as these provide much lower unit rate compared to non-renewable sector.
2. Failing IT, BPO sector: Automation and stricter immigration laws have led to a decline in one of the strongest sectors in India leading to increasing unemployment rate which is a leading indicator for declining GDP ( the GDP numbers might have been kept artificially high to promote investor confidence)
3. Tech-based startups (including FInTech) are highly over-valued. Major investments in this sector are not delivering expected results and companies like TaxiforSure, Snapdeal, Flipkart, Ola, Grofers, Peppertap, Housing.com etc. have seen investment on their potential but there haven't been good returns in the past. Most rating agencies have already downgraded the valuation of these companies and some investors have written-off their loans.
In the period close to Q4'17 - Q1'18 major pullback is expected.
SENSEX LONG TERM BUY SETUP :)BUY CALL :) On SENSEX LONG TERM TRADE
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Sensex clear signal to downside by Diverging RSISensex clear signal to downside by Diverging RSI and BB resistance. Go short on any rallies until BB is breached on closing basis
Long SENSEXI am expecting a quick move past 30,000 when the market opens on Monday. The correction on Friday was too rapid and I am expecting a pullback which should break through the 30k level. And if this does hold true we are in for a massive up move on the SENSEX as I believe "animal spirits" will take over past the psychologically critical 30k level.
To give you some context, the last time the SENSEX touched (briefly broke) the 30k level was in March 2015. The current bull run definitely has more steam (based on economic reforms that are in progress/or have been announced), but we will have to see how it survives the earnings season coming up.
The best way to play this would be to go long OTM calls.
India's Sensex index still a sitting duck for bear huntThe Sensex is back testing it's old highs at 30000 from 2015. It's still ripe for a bear attack which may well come next week
Dez 2017: 33.500?Longterm view:
For me the Chart is clear bullish. The Level for further Longs is 30.000
AT present, the RSI turns red, u should exspect a healthy drop soon after kissing the Pivot resistance Level at 30.000. Kissing the neckline would be typical.
Fibonacci Observations on SENSEX
Observations are mentioned on the chart.
With this analysis i am not trying to predict top or bottom or future direction of the market. With this analysis i am trying to share the idea of different ways of doing analysis, i hope it will openup new ways by which you can do analysis of your own.
