ARK talks on Curve!
Hard(ly) liners!
NIFTY:-
ARK Investment, which originally identifies NVIDIA, however, exists too early. What is interesting to note is, it considers NVIDIA move as much ahead of the curve; read it as overpriced. Currently it is every one's baby near 410 plus dollar. The euphoria is too much not to own if not NVIDIA, similar stocks. Why is this relevant for understanding markets. It clearly demonstrates, those who are in high and mightily also cannot foresee who the market dynamics quickly change or unfold. There are very few who buy and sit tight. For every one story there are 1000s bad stories in that format. The probability of March type last couple of days reversal is behind, today being the last day. Hattrick month for bulls. Last six months the honours are even. Both bulls and bears share the hattrick. What is in store for June? The first ATH line drawn in red is around yesterdays' low. A casual look at the attached graph suggests markets need a breathier to push for new ATH. The PIP which is smaller time frames, throwing in diamond pattern, which is top pattern calling for corrective moves. Cues in Asia are weak, as well as overnight trends. Some amount of profit taking is on the cards. Month end SIP related buying might have already unfolded or has no relevance for the day. FII continue to bring loads. The long trendline drawn from 16800 and the horizontal line drawn around the 18300 are the lines to watch for the bulls if and if only there are any failures to attempt higher. We have our own economic data after market close. Globally softer data is positive as it means lower inflation and pause in rates. For the day, the support and supply should work tad in the favour of sell below 18670 for 18550 area.
NIFTYBANK
US debt talks continue towards next phase of getting passed. Hardliners from both Republicans and Democrats fight it out, pushing some new concerns. China dithers, political postures not doing any favour. Europe economic data crumbles, UK goes on "communist kind of measures". Cues red naturally. It is always interesting to see the Nifty and Banknifty combo talking to each other. Nifty bank had consolidated in the last 10 trading sessions and then broke away. This puts any chances of revisiting the consolidation zone to test. The gapup of this Monday is one factor to see how it moves, will it fill or the market moves past higher. Ideally the gap needs to be filled in three trading sessions, that brings the current frame to six trading sessions. We see the dips getting supported than supply getting held. The PIP graph depicts more of an expanding triangle, suggesting larger moves with higher inclination. There are hardly any hardliners here. However, nifty can be influenced by other sectors like IT and Metal and not by Banks. That pushes 44300-350 as buy side for the day with stops 44130 to move past yesterday high. Does nt warrant a deeper stop. Alternatively, one hour low minus 150 points as risk for the reward.