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