General Election, A Rare Opportunity, Must be capitalized : Histroy vs. Strategy Resuls.

Dear Friends Indian Markets deeply follow two features of New Delhi Circus- First the Budget and the Second General Election. And this time too there is no exception as markets have already kissed all time high. Stock markets are furiously swirled by momentum gathered through the outcome of general election. It has been seen in the past. Theorists agree that victory for Congress or BJP would be in... favor of the stock markets whereas Left front or third party coalition would adversely affect the markets. The point here is that in any case markets may give bigger moves on either side. Extreme volatility will be seen in markets in coming days and it will continue until the election results are clearly visible. While most traders tend to lose money in such markets due to lack of proper strategy, team Dev Advisory is all set to capitalize on the same. As we are approaching 2014 Elections, team Dev Advisory, as usual, is ready with Election Strategy. We have delivered in past and this time too we are fully ready to conquer volatility and capitalize this rare event. The strategy has the potential to recover your life time losses or at least will grow your money by 5 to 10 times in a very short term.

 

 

Check out the Past record of Last 3 Elections Below:

 

 

 

Election Year 1998-1999

 

Date

Event

Market Movement

Feb-16 to Feb-28

First to Fourth poll Voting

Up by 12%

March-6

NDA Won the Election

Up by 3%

Overall movement in Feb

Election Month.

Market was up by 12%

Oct-Nov 1999

NDA lost majority & Voting for new government begin.

Market was down by 13%

Nov-Dec 1999

NDA won again with full majority

Market was up by 23%

 Strategy Result: Rs.8,00,000 Profit on Rs.1,00,000

 

Election Year 2004

 

Date

Event

Market Movement

Apr-20 to May-10

First to Fourth poll Voting

Down by 6.7%

May-13

Left Front Led UPA won the Election

Down by 6%

May-14

Left Front comments on Stock Market regulation

Black day for Market Down by 12% in a single day

Overall movement in May

Election Month.

Market was down by 13%

Jun-Jul 2004

UPA Govt. Start Economic reform

Market was up by 9%

Strategy Result: Rs.4,00,000 Profit on Rs.1,00,000

 

 

Election Year 2009

 

Date

Event

Market Movement

April 16 to April 13

First to Fourth poll voting

Up by 11%

Strategy Result: Rs.6,00,000 Profit on Rs.1,00,000

 

 

This time too we are ready with our strategy. Interested Traders can mark us a mail on money.montra@ymail.com for more details.

 

 

 

 

 

 

An Update on Bank Nifty

In our previous post we recommended Bank Nifty Bull Spread Option Strategy. We asked to Long 11200 CE at Rs.425 and Write 11500 CE at Rs.280 . And as expected the Index kissed 11700 level which was our short term Target. The Strategy worked out and now 11200 CE closed at Rs.828 and 11500 CE closed at Rs.608 . The strategy as per the last closing price gives the handsome profit of

 

 

 

Rs.1875 per lot          (Rs.403- Rs.328 i.e. Rs.75*25 = Rs.1875) .

 

We also updated during market hours that the Strategy was giving profit of Rs.1500 per lot. Hope You enjoyed.

 

 

 

 

No Need to Listen to those jokers and searching blogs of multibaggers.

 

 

 

Just stay Tuned with us and keep minting .. Cheerssssss

 

 

 

BANK NIFTY 301113

The Index found a strong support around its neckline area of 10400 and witnessed bounce back. It broke the resistance area of 10800 and consecutively closed above the said mark in a recent past. On a daily chart it just managed to close above its uptrend resistance line. On  a weekly chart too it formed a Bullish Engulfing Pattern. With other indicators too looking Bullish we expect that the Index might commence its uptrend and can kiss the 11500-11700 level in a short term. On a conservative side we recommend Bull Spread Strategy for the Index.

Buy 11200 Dec. CE at Rs.425 and Sell 11500 Dec. CE at Rs.280. 

Max. Loss per lot Rs.3625 (145*25) per lot

Max. Profit Rs.3875 (155*25) per lot

Bank Nifty 9112013

The Index is facing resistance around 11750 level. On a weekly chart it has formed a Bearish Engulfing Candlestick. On a daily chart it just found support around its uptrend line. On the downside 10650 is the major support for the index. At current level as per the daily chart all indicators have turned Negative.The index is looking tired, though we need to wait for the follow up moves. Considering all these facts we suggest that traders can try Bear Spread Option Strategy.

BANK NIFTY 4813

BANK NIFTY IS FINDING SUPPORT AT 9860 ZONE. JUST A COUPLE OF SESSIONS AGO IT FORMED A LONG-LEGGED  DOJI ON A DAILY CHART AND AS PER THE FIBO TOOL IT IS EVIDENT THAT THE INDEX IS HOLDING ITS GOLDEN RATIO. CONSIDERING THESE FACTORS WE EXPECT A SORT OF BOUNCE IN BANK NIFTY IF 9860 IS NOT BROKEN. SINCE THE OVER ALL TREND OF THE INDEX IS DOWN WE RECOMMEND TO TAKE EXPOSURE IN OPTIONS. TRADERS CAN BUY 10600 CE AT 131 WITH THE SL OF 50 TGT 350-400. MAX RISK IS RS.2025 PER LOT WHILE THE POTENTIAL GAIN IS UNLIMITED. 

BANK NIFTY 1813

BANK NIFTY TODAY FORMED A DOJI CANDLE STICK PATTERN ON A DAILY CHART AFTER A SHARP SELL OFF. IT KISSED THE RESISTANCE LEVEL OF 10200 BUT FAILED TO CLOSE ABOVE THE SAME. LOOKING AT THE RECOVERY WITNESSED IN BANK NIFTY AFTER COUPLE OF SWING LOWS IT SEEMS IT IS NOW IN DEMAND ZONE AND MAY MOVE NORTHWARD. RECOMMEND BUY ONLY ABOVE 10225 WITH STRICT SL OF 10140 FOR THE POSSIBLE UP MOVE UP TO 10530-10600 LEVEL. 

BANK NIFTY 27713

THE INDEX HAS CLOSED BELOW A VERY STRONG SUPPORT AREA AROUND 10600 LEVEL. IT IS LOOKING IN A OVERSOLD ZONE BUT STILL WE FIND NO SIGN OF RECOVERY OR REVERSAL. WE ARE OF THE OPINION THAT UNLESS AND UNTIL THE INDEX CONSOLIDATES AND MOVES BEYOND 10600 LEVEL TRADERS MUST AVOID EXPOSURE TO BANKING STOCKS. ON THE DOWNSIDE THE IMMEDIATE SUPPORT IS PLACED AROUND 10200 LEVEL. AS OF NOW BEARS ARE HAVING CLEAR UPPER HAND.

CNX AUTO : 9713

CNX AUTO INDEX POSTED LOWER HIGH BUT STOCHASTIC FORMED A HIGHER HIGH. TECHNICALLY IT IS CALLED BULL SET UP. EARLIER WE HAD DISCUSSED THE SAME IN CASE OF CAIRN INDIA AND IT SUCCESSFULLY DELIVERED. AGAIN BULL SET UP IS CLEARLY VISIBLE IN CNX AUTO CASE. THE INDEX WITNESSED A DECLINE AFTER BULL SET UP AND TESTED SUPPORT AREA AROUND 4500 LEVEL. NOW THE INDEX FORMED A DOJI. SO WE EXPECT TREND REVERSAL IN AUTO INDEX AND THE INDEX MAY COMMENCE ITS SHORT TERM UPTREND. THE POST IS FOR STUDY PURPOSE ALTERNATIVELY TRADERS CAN TAKE POSITIONS IN SELECT AUTO STOCKS TO CATCH THE MOMENTUM. 

BANK NIFTY OPTION STRATEGY

BANK NIFTY WITNESSED A SHARP CORRECTION RECENTLY PARTICULARLY DUE TO  HEAVY SELLING IN PSU BANKS. BANK NIFTY IS NOW HANGING AROUND ITS UPTREND LINE AND FINDING SUPPORT AROUND 11300 LEVEL ON A CLOSING BASIS. FURTHER ON INTRADAY BASIS IT IS FINDING SUPPORT AROUND 11000 LEVEL AND WITNESSING RECOVERY. CONSIDERING THESE FACTORS AS WELL AS MODERATE BULLISH INDICATORS WE ARE OF THE OPINION THAT BANK NIFTY MAY TRY TO KISS 11750-11800 LEVELS IN SESSIONS AHEAD. 

BUY BANK NIFTY 11800 JULY CE @ 138 SL 50 TGT 240-290

CNX MIDCAP 12513

CNX MIDCAP IS NOW FINDING RESISTANCE AROUND ITS UPTREND LINE i.e. AROUND 8050 LEVELS. CONSECUTIVE WEEKLY CLOSES ABOVE 8050 MARK WILL ADD GREAT FIRE AND THE INDEX SEEMS TO BE SET TO KISS 8800 MARK IN A MEDIUM SHORT TERM. 

CNX METAL 4513

METAL STOCK DIDN'T PARTICIPATE IN THE RECENT RALLY AND SO FAR THEY HAVE UNDER PERFORMED THE BROADER MARKETS. HOWEVER DURING RECENT PAST METAL INDEX FOUND GOOD SUPPORT IN 2110 ZONE AND WITNESSED BOUNCE BACK FROM THE SAID LEVEL. A MODERATE BULLISH CANDLE FOLLOWED BY COUPLE OF DOJIs AROUND SUPPORT AREA INDICATE A POSSIBILITY OF BOUNCE BACK. WITH OTHER INDICATORS TOO LOOKING POSITIVE WE EXPECT METAL INDEX MAY SHOW STRENGTH IN COMING WEEK AND METAL STOCKS MAY SHINE. MINOR HURDLE AROUND 2265 AREA WHICH ONCE CROSSED ON A CLOSING BASIS, THE PROBABILITY OF THE INDEX KISSING 2370-2400 MARK IN A NEAR FUTURE CANT BE RULED OUT. 

CNX PSU BANK 2413

THE INDEX HAVING TESTED CRUCIAL SUPPORT ZONE AROUND 2950 TODAY GAVE A VERY FIRM CLOSE ABOVE ITS IMMEDIATE RESISTANCE ZONE OF 3100. WE SENSE RSI IS SHOWING BULLISH FAILURE SWING WHICH IS A QUITE RELIABLE REVERSAL PATTERN. SO WE ARE NOW OF THE OPINION THAT PSU BANKS MAY CONTINUE TO SHOW STRENGTH IN NEAR TERM AND THE INDEX COULD KISS 3375 LEVELS.

BANK NIFTY: SERIOUS BREACH OF SUPPORTS

ON A DAILY CHART BANK NIFTY HAD A STRONG SUPPORT AROUND 11400 WHICH HAS NOW BEEN BROKEN AND IT HAS GIVEN A CLOSE BELOW THE GOLDEN RATIO i.e. 61.8% RETRACEMENT. ALTHOUGH BANK NIFTY SEEMS TO BE HIGHLY OVERSOLD ONE MUST AVOID BUYING AS THE MAJOR TREND SEEMS TO BE DOWN. A GAP AT 10660 IS STILL UNFILLED WHICH MIGHT ACT AS MAJOR SUPPORT FOR THE INDEX IN COMING DAYS AND THE SERIOUS BREACH OF THE SAID LEVEL MAY CREATE MORE PANIC IN BANKING STOCKS AND THE INDEX WE SENSE CAN TEST 9500 MARK. AT THIS STAGE THIS MIGHT SOUND UNREALSTIC TO MANY BUT WE SENSE THAT BANK NIFTY HAS BREACHED MAJOR SUPPORTS AT 11700- 11400 VERY CONVINCINGLY.

 

ON A WEEKLY CHART IT HAS FOUND SUPPORT AROUND 50 WEEKS EMA AND WEEKLY CLOSE BELOW 11180 MAY MAKE THINGS WORST. AGAIN WE REQUEST TO AVOID BUYING IN BANK NIFTY UNLESS AND UNTILL IT CLOSES ABOVE 11200 ON WEEKLY BASIS AND ON DAILY BASIS 2 OR MORE CLOSES ABOVE 11400 HAPPENS. WE ARE HIGHLY BEARISH ON THE INDEX PROVIDED IT TRADES BELOW 11200. 10660 IS THE LAST HOPE.

 

WOULD LIKE TO QUOTE ONE OF OUR FAVOURITE QUOTES FROM THE GURU DENNIS GARTMAN

"Markets can remain illogical longer than you or I can remain solvent,"


 

BELOW IS THE DAILY CHART.

 

 

WEEKLY CHART:

 

 

WEEKLY CHART WITH FIBONNACI TOOL

 

 

 

CNX PSU BANK 19313

THE INDEX TODAY WAS DOWN BY 2.7% AND CLOSED AT 3218. THE INDEX HAD A VERY STRONG SUPPORT AROUND 3371 AND DURING RECENT RALLY IT FAILED TO CROSS THAT LEVEL ON A CLOSING BASIS. THE INDEX TODAY CLOSED BELOW ITS RISING TREND LINE AND HELD CRUCIAL SUPPORT PLACED AROUND 3185. WE BELIEVE IF 3185 IS BROKEN ON A CLOSING BASIS PSU BANKS MAY WITNESS FURTHER SELL OFF AND CRASH UPTO 2950 LEVELS. CONVINCING CLOSE ABOVE 3371 IS REQUIRED FOR THE PSU BANKS TO GAIN FURTHER MOMENTUM. WE REQUEST TO AVOID ANY BUYING IN PSU BANKS IF INDEX TRADES BELOW 3185 AND UNTIL IT KISSES 2950.

 

 

 

 

 

CNX FMCG UPDATE 18313

IN OUR EARLIER POST WE HAD UPDATED ABOUT CNX FMCG AND WROTE THAT ABOVE 15115 IT LOOKS BULISH. TODAY THE INDEX CLOSED 15245 AND FORMED A STRONG BULLISH CANDLE. WE EXPECT THE FMCG COUNTERS TO MOVE HIGHER...... KEEP EYES ON ITC, MCDOWELL, DABUR AND LOVELY HUL......

 

 

 

CNX FMCG 13313

THE INDEX TODAY CLOSED ABOVE IT 50 DAYS EMA AND KISSED THE RESISTANCE AROUND 15115.... ONCE CROSSES 15115 GO FOR HUL AND ITC  

IF GIVES CLOSE ABOVE THE SAID LEVEL WE EXPECT RALLY UPTP 15350-15400.....

 

 

 

CNX AUTO:

JUST HAVE AN EYE ON 4660 LEVELS.

 

LAST CLOSE 4569 ......... SUPPORT NOW AT 4500

 

 

 

ONCE CROSSES 4660 THEN????

 

TWO OR MORE CLOSES ABOVE 4660+ ANY WEEKLY CLOSE ABOVE 4660 HAPPENS

THEN WATCH UNEXPECTED MOVES..... OUR TGT 5000+

 

 

 

 

 

 

 

MORE DETAILS ABOUT THE STOCKS AND PERFECT ENTRY TO SUBCRIBERS ONLY

 

 

UPDATE ON BANK NIFTY

IN OUR EARLIER POST WE HAD UPDATED THAT TECHNICAL BOUNCE BACK IN BANK NIFTY IS EXPECTED UPTO 11770 AND THE INDEX KISSED 11814 AND FINALLY MANAGED TO CLOSE AT 11792.... NOW 11645 LEVELS MAJOR SUPPORT ... 11990 LEVELS NOW GOING TO ACT AS RESISTANCE FOR THE INDEX.....


BANK NIFTY

THE BANK NIFTY IS STILL IN A UPTREND. A CRUCIAL SUPPORT EXISTS AROUND 11475 LEVELS. ON A DAILY CHART BANK NIFTY HAS FORMED A DOJI CANDLESTICK PATTERN. SO CONSIDERING THESE 2 FACTS i.e.  THE INDEX IS TRADING AROUND A VERY CRUCIAL SUPPORT AREA AND IT HAS FORMED A DOJI ON DAILY CHART A POSSIBLE TECHNICAL BOUNCE BACK UPT0 11700-11770 LEVELS CANT BE RULED OUT.