NIFTY
It is search for the reasons, by all those who don't trust the evidence. When the cycles are in operation, the narratives take a knock down.
Euphoria of Power, Euphoria of Solar Panels pushes the narrative to the hilt. Market open gungo, rise mighty near 200 points. We did pull the trigger to short, now part profit 21150, bring the balance to trailing stop 21330 pull the balance profit around the 20880-930 area.
Just look at the graph you will be amazed, the five-wave structure, the rise was simply the fourth wave that failed and moved down fiercely, all the forces could not stop. There is little or no meaning in searching the truth. It is all ingrained in the graph.
This January will be remembered as one of the eventful one, entertainment unlimited for those who are by standers. "Entertainment Unlimited" is the tag line of ZEE Telefilms. This one has been on the ban list of FnO. #polycab #HDFCBANK #HLL #ZEETELE what next?
When the corporate trust issues are raised, the Kneedle moves towards the banking sector, no wonder they tanked. Hopefully they are resolved sooner than later.
Not much of economic data, BOJ held steady, but hinting that the 2% inflation target is achievable. Singapore Inflation rises.
Trump wins New Hampshire, the Super Tuesday, still the context is getting extended, markets have not discounted the full impact of Trump Return.
There are many areas in various sectors that has printed the HnS pattern when we see these in larger evidence, it is difficult to sustain gains. Not ruling out an extended move towards 20500. The real buying power that is sustainable appears in the range of 20500-20800 what it does to the psyche and confidence will have to be assessed later. For now, 21300 remains a sell zone stops 21460 (for new shorts, incrementally smaller size).
NIFTYBANK
Leader Blinks, Followers wink. HDFC continues its march, pulling the gravitation towards it.
Nothing is spared, double whammy of PSU Index and PSU banks further punctures. Long unwinding is the word than profit taking. Indus IND joins, Kotak is not far behind, lone saviour is the ICICI Bank.
The gap of 28 November filled yesterday; we are in the fourth week of bearish contours. Mostly likely market would like to search for some base. Tomorrow is the expiry, so today more or less some shape to unfold. AXIS bank results are out, the market reaction to this space can leave some clues.
Bank of Canada Interest Rate decision, some cues can be inferred there. BOJ left untouched, but indicated inflation target is achievable. China liquidity measures are localised. HKG is the beneficiary. Comparisions always kills.
Overseas cues are less relevant, if any they are negative more so from Asia. US had some resistance to move further, and today or this week action will show more evidence if higher or lower.
Margin calls, excess leverage, corporate governance, results remain the confluence of the details to monitor. In the end price is the best indicator. 44500-45500 is the new range to look for. Watch all the arrows for the clues and directions.