CNX Pharma : Is major reversal on card?

Pharma sector has been the darling not only of Mutual Fund Managers but also of the major retail investors. The Pharma stocks have delivered multibagger returns over the last few years and some of the counters from Mid & Small Cap categories have given multi-fold return in no time. The entire sector witnessed a very sharp bull run from 6400 levels up to 14000 mark. However during recent past some the counter from pharma space has taken nose-dive and have broadly under-performed the broader markets.

The CNX Pharma index has been facing resistance around 12000 levels. It successfully breached its resistance zone of 11700-11750 levels during recent past but could not capitalize the same today closed below its support level of 11400. The index has now entered a multiple support zone of 11300-11000 and the breach of the same on closing basis may lead further selling and may drag the index to 10800-10600 levels which is the major support zone for the index. Consecutive closes below 10700-10600 levels may add more pressure and we won't be surprised if the index 9800-9500 levels. For any sustained up-move consecutive closes above 12000 levels by the bulls are required. Traders can cautiously look for shorting select pharma stocks to benefit from the potential south-ward journey.

 Extreme caution is necessary at this point as we have have already mentioned that it will be trading around multiple support zone. 

Bank Nifty Levels

The Index has been trading around its tough resistance zone of 19200-19300. The close above same may provide the fuel and it may move to post fresh high. Strong support at 18000 which is the Golden Ratio.

Intraday Support & Resistance 

Pivot Point: 18955

Support : 18880-18820-18685-18550

Resistance : 19015-19090-19220-19355

CNX Pharma

The Index seems to have formed a very strong base around 11600 levels during recent past. Today it formed a pin bar pattern and couple of Doji Candlesticks formation is also clearly visible on a daily chart. On a weekly chart it has been forming Doji. So the Daily & Weekly chart readings clearly indicate the exhaustion of supply around 11600 levels. Besides other technical indicators too looking tired possible bounce from current levels can't be ruled out in a near term. As long as 11600 is not breached on a closing basis we believe that chances of further fall from here seems limited. So considering the Risk/Reward ratio at current levels traders can bet on select pharma stocks for possible up move up to 11800-11850 levels in a short term.

CNX Pharma : Time to Take Bitter Pill?

The Pharma stocks have consistently outperformed the broader markets so far.Even during global markets turmoil they have shown great resilience. So at this juncture we tried to analyze the CNX Phamra Index and found interesting observations on a daily as well as weekly chart.

On a daily chart the Index has been consistently respecting its 200 DMA and again the Index is near 200 DMA.  It seems that the Index has very strong support around 12000 levels holding the same we may see bounce back in a near term.

 On the other hand on a weekly chart the Index has been consistently respecting its 50 WMA. As per weekly chart 11850 is the crucial level and holding the same 13200 to 13500 levels can't be ruled out in a near term.

So putting together Daily and Weekly observations chances seem to be very bright that the Index may witness bounce back from current levels. Traders can look for select Pharma stocks from Large and Mid Cap space to benefit from the possible bounce back. At this point the Index offers lucrative risk-reward ratio and taking exposure to Bitter Pills may prove Sweet for the Wealth.

CNX PSU Bank - Relief Rally On The Card?

The Index took nose dive from its all time high level around 4460 levels and witnessed a sharp correction. Just a couple of sessions ago it formed Doji and today the Index formed a strong Bullish Engulfing Candlestick on a daily chart. As per Fibbonaci it has witnessed almost 61.8% retracement and now hanging around the said level. Besides Bullish Divergence of RSI is clearly visible on a daily chart suggesting that bears are losing grip at least temporarily. During recent past the Index has found support around 3100 levels and facing resistance around 3190 levels. Looking at the current Technical Set up it seems that once 3190 levels is captured on a closing basis the Index may witness relief rally up to 3290 to 3335 levels in a short span of time.  Trades can keep on radar select PSU Banks for swing trading purpose.

Bank Nifty

The Index broke its 200 DMA during recent past and posted swing low of 17376. The bears could not hold the Index below its 200 DMA and gradually it started its upward journey. As per Fibonacci Retracement the Index has managed to close just above its Golden Ratio. Besides it has also captured its short term moving averages on a closing basis which is a bullish sign. On a daily chart it seems that the Index has formed a Falling Wedge chart pattern which indicating the continuation of northward journey.

 As long as the Index trades above its Golden Ratio placed around 18650 levels the view remains bullish. On the other failing to hold 18650 on a closing basis we may see selling pressure.

Resistance 19100-19500 whereas support at 18400-18150

We have RBI Monetary Policy review on 2nd June, 2015 which is expected to set the further tone for the Index and broader markets. 

CNX Metal

Metal Stocks to Shine?

 

The Index has been quite under performer. However the index found support around 2280 mark and started steady recovery. During recent past the Index captured its short term moving averages but it found resistance around 2515 levels and failed to capitalize the move. However today the Index formed a strong bullish candle on a daily chart and bulls managed to capture 20 & 50 DMA. Again today the index knocked at 2515 but missed to give close above the same. With other technical indicators turning bullish it seems that earlier fall might be shake out and metal stocks may continue to shine in near future.   

Consecutive close above 2515 + weekly close above the said mark may take the index to kiss 2690-2730 levels. The strategy that investors can adopt is to buy metal stocks on dips as long as 2400 level is not breached on a closing basis.

Bank Nifty 252015

During recent past the Index has quite out performed Nifty Darling. Nifty lost its 200 DMA, but on the other hand Bank Nifty has managed to hold its 200 DMA.

Last Close @ 18338

The Index found resistance around its 20 DMA , however closed above 5 & 10 EMA

Immediate Support at 18200. Above 18200 rally up to 18450-18500 can't be ruled out.

Don't remain short above 18500

If sustains above 18500 the index may fire to kiss 18700-18800 levels

Below 18200 bears will have upper hand and the Index may move to 17800-17700 levels.

CNX IT.... Will IT Stocks Be in Actions Again?

The Index after witnessing Gap Down Opening from 9877 levels consolidated in a range of 9100 to 9500. It broke the support around of 9100 during recent past and kissed 8940 level which is 200 DMA of the Index. It formed a Doji Candlestick and showed sharp recovery from the said mark. Today the Index witnessed a gap up opening and managed to closed above its minor hurdle of 9300. Looking at the other Technical Indicators we expect that the Index may show strength in sessions ahead. As long as 9130 is not broken on closing basis we remain Bullish on the Index and expect the Index to kiss 9550-9750 mark in a short term.

 

 

We are having Bulls Eye on Wipro

 

 

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.