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Blog posts February 2020

Week Ahead: What Next After One Of The Most Brutal Selloff Of The Decade?

The previous week saw one of the worst sell-offs of the decade when the global markets reacted with absolute panic to the spread of the coronavirus. The Indian markets remained affected as well. The global financial markets went in disarray as the world grappled with the possibility of the coronavir…

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Friday Trade Setup: NIFTY Show Mild Signs Of Attempting Stability; Avoid Aggressive Shorts Now

The expiry day of the February series saw the markets staying volatile during the day while it ended on a negative note after dipping below critical levels. The NIFTY saw a negative opening and soon drifted below the crucial 10550 levels in the early afternoon trade. However, the remaining part of t…

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Thursday Trade Setup: Shaky Start To The Day Likely; Short-Covering Led Up-Move Cannot Be Ruled Out

In a very disappointing session, the Indian equity markets continued to drift lower while staying in line with the weak global trade setup. Contrary to the expectation, the NIFTY opened on a much weaker note. However, until afternoon, the index had recouped much of its morning losses and traded just…

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Wednesday Trade Setup: Mild Technical Pullbacks Likely; This Zone Offers Stiff Resistance To NIFTY

After a brutal sell-off on the previous day, Tuesday’s session witnessed some consolidation and deceleration in the downtrend. The markets opened on a modestly positive note and traded with capped gains in the morning session. The afternoon session saw the index paring its modest gains and slipping …

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Tuesday Trade Setup: Broader Weakness May Persist; Stay Alert On Technical Pullbacks, If Any

In what can be called a very weak start to the trading weak, the Indian equity markets fell in line with the weak global setup and ended the day with a deep cut. A somewhat fragile opening was expected as the Indian markets were shut on Friday. However, start on Monday’s trade remained much weaker t…

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Monday Trade Setup: Tepid Start Likely; Meaningful Upside Unlikely Unless These Levels Are Taken Out

In a session that remained important from the technical perspective, the Indian equity markets continued to correct from higher levels and ended the day on a negative note. After a flat start on Thursday, the NIFTY inched higher and traded with modest gains by afternoon. However, the second half of …

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Week Ahead: Watching This Level Important; RRG Chart Show These Sectors Rotating Favorably

While trading just on the anticipated lines, the Indian equity markets continued to consolidate around its critical levels throughout the previous week and ended flat with negligible loss. Just as mentioned and expected in the last weekly note, the NIFTY did not make any major headway, and the upsid…

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Thursday Trade Setup: Weekly Options Data Point Towards Capped Upside; Use Moves To Protect Profits

In the previous note, we had mentioned about a likely technical pullback happening in the markets. On the expected lines, the NIFTY put up a strong rebound from the support levels and ended on a healthy note. The NIFTY opened higher, and after a mild correction from the opening levels, it moved high…

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Wednesday Trade Setup: Mild Technical Pullbacks Likely; Broader Technical Picture Remains Weak

After trading predominantly on a bearish note throughout the day, the NIFTY recovered the bulk of its losses in the last hour of the trade. Despite no negative overnight cues, the markets opened on a much weaker footing in the morning. The index opened on a negative note and got weaker as the day pr…

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Tuesday Trade Setup: Quiet Start Expected; Indicators Make Deceleration Of Momentum Evident

In the previous note, we had mentioned that in the event of the NIFTY not scaling back above the 50-DMA level; there will be some more weakness creeping in. While trading on the anticipated lines, the Indian equity markets slipped further to test its short-term 20-DMA on Monday. The markets saw a fl…

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Monday Trade Setup: NIFTY's Behavior Against This Level Imp; Sustainable Upsides Only Above 12230

The Indian equity markets failed to capitalize on the positive opening that it got on Friday, and ended the day with a decline following a long unwinding from the higher levels. The NIFTY opened with modest gains but soon pared all those early morning gains to slip in the negative territory. After t…

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Week Ahead: NIFTY Vulnerable At Current Levels; RRG Chart Show These Groups Doing Relatively Better

The previous week saw the markets consolidating in a 256-point move as the headline index NIFTY50 ended flat with a negligible gain. After bouncing off from the 50-Week MA in the earlier week, the NIFTY continued to trade near its critical zone of 12100-12225 throughout the week while making no dire…

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Friday Trade Setup: NIFTY Poised At Critical Juncture; Holding This Support Level At Close Important

Entirely on the anticipated lines, the weekly options expiry dominated the trading session on Thursday as the NIFTY ended with mild losses. It was mentioned in the previous note that the 12200 is likely to act as an inflection point for the markets. It was also expected that in the event of the NIFT…

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Thursday Trade Setup: Weekly Options Expiry To Dominate The Session; Watching This Level Important

Contrary to what was expected, the Indian equity markets saw a yet another day of short-covering led up move and ended the day on a stronger note. The markets opened on a positive note, and the NIFTY traded stable in a sideways trajectory. The entire trading session stayed in a 35-odd point trad…

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Wednesday Trade Setup: Tentative Start To The Day Likely; 50-DMA Remains A Crucial Level To Watch

It was a day of short-covering for the Indian markets as the headline index ended the day with gains. The NIFTY saw a much better-than-expected opening today and got even stronger as the day progressed. The NIFTY moved past the critical 50-DMA level at one point in time. However, the second half of …

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Tuesday Trade Setup: Soft Start To The Day Expected; Watching This Level Crucial Over Coming Days

The Indian equity markets remained in a predominantly corrective mood as it ended the day with a modest cut. The markets opened lower and remained in the falling trajectory in the morning trade. However, after that, the markets arrested its declined but traded sideways without taking any directional…

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Monday Trade Setup: A Tepid Start Likely; Lay Emphasis On Protecting Profits At Higher Levels

While trading much on the anticipated lines, the Indian equity markets consolidated around the current levels while pausing its unabated short-covering led pullback. The NIFTY opened mildly in the positive, but soon it slipped into the red in the early minutes of the trade. After that, the index sta…

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Consolidation May Spill Over To The Coming Week; RRG Chart Show These Pockets Staying Resilient

The previous week remained a six-day trading week for the markets. Saturday, February 01, 2020, was a full-trading day because of the Union Budget that was presented. The day turned out to be a wide-ranging day for the markets on expected lines as Union Budget is one of the most important domestic e…

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Friday Trade Setup: Minor Signs Of Exhaustion Seen; Protect Profits At Higher Levels

While displaying a similar kind of behavior, the Indian equity markets opened higher, pared the morning gains, and recovered again to end the day with modest gains. The NIFTY has ended in the positive for the fourth day in a row but has remained below its crucial levels. The short-covering was fuele…

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Thursday Trade Setup: Weekly Options Expiry To Dominate The Trade, Some Consolidation Imminent

For the third day in a row, the Indian equity markets continued to move higher, led by strong short-covering activities. The markets opened on a flat note but crawled back in the positive territory in the morning session. At one point in time, the NIFTY was trading with modest gains but the mid-sess…

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