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Gemstone Equity Research & Advisory Services

Blog posts March 2020

Monday Trade Setup: NIFTY Likely To See A Shaky Start; Any Slip Below This Level May Infuse Weakness

In a wide-ranging session on Friday, the equity markets chose to consolidate as it ended flat with minor gains. The NIFTY saw a much stronger-than-expected opening on the back of strong overnight gains in the US markets. However, after witnessing a gap-up, the markets failed to capitalize on the rob…

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Week Ahead: Avoid Getting Carried Away By Pullbacks, If any; These Are Resilient Sectors, Says RRG

We are using Line Charts as it would enable us to take a longer-term structure of the weekly charts. We do this so that we can examine the behavior of the markets against the decade-long trend line which stand violated. After a massive decline of over 12% a week before this, the NIFTY decelerated it…

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Friday Trade Setup: Downside Momentum Is Decelerating; NIFTY's Behavior Against This Level Crucial

The markets continued with the technical pullback for the third day and went to end once again on a strong note. After witnessing a quiet start to the day, the morning trade saw the index staged a smart rally, which took the benchmark past the 8700-mark. However, the index soon came off from the hig…

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Thursday Trade Setup: NIFTY Yet To Confirm A Likely Bottom; Price Action Against This Level Crucial

In a technically important session, the Indian equity markets staged a smart recovery in line with the global markets. The rally, which was evidently fueled by a massive spate of short-covering, took the NIFTY back inside the crucial 7850-8550 zone. The markets saw a shaky start to the day as the in…

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Wednesday Trade Setup: NIFTY May To Grapple With Lockdown Implications; Staying Above This Level Imp

Amid a day of extremely volatile trade, the Indian equity markets attempted to stabilize while trading in a broad 500-point range. The markets saw a stronger-than-expected start to the trade but failed to sustain those gains. Soon after the open, the NIFTY slipped nearly 500-points from the opening …

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Outlook For Tuesday: NIFTY Has More Negatives To Deal With; Pullbacks, If Any, Will Be Deceptive

The Indian equity markets faced more than one negative factor as it stepped in the new week on an extremely bearish note. Apart from an overnight weak global setup, the domestic markets grappled with Sebi measures that were directed towards curbing naked shorts. To add to that, the country has start…

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Monday Trade Setup: NIFTY Faces A Potential Gap-Down Opening; Watching This Zone Crucial

The Indian markets snapped its four-day losing streak as the NIFTY staged a strong technical rebound on Friday. The markets saw a quiet opening, and after opening on a modestly positive note, it slipped in the red in the early morning trade. The markets managed to crawl back in the positive zone and…

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Week Ahead: NIFTY Has Multiple Negatives To Deal With; RRG Chart Suggests Adopting A Defensive Play

The unabated meltdown in the equities markets continued this week as well, which saw the NIFTY plunging to the fresh weekly lows. The Indian equities traded in line with the weak global setup and lost ground as rapidly as other global markets. The benchmark index NIFTY declined and ended in negative…

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Friday Trade Setup: Short Covering Led Pullbacks Can Be Deceptive; Avoid Any Major Directional Call

In a day that was marked with high volatility and wide trading range, the Indian equities fluctuated on both sides and finally ended in the negative for the fourth day in a row. The markets witnessed a sharply lower opening amid weak global setup. After opening with a gap down, the NIFTY attempted t…

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Outlook For Thursday: Avoid Finding NIFTY Bottoms In Isolation; Global Trade Setup Will Dominate

In an extremely bearish session of trade, the NIFTY tested the previous low formed a couple of days back and also ended below it. The Markets saw a stable opening to the session and traded with gains. The gains got eroded quite early, and the NIFTY transformed itself in a secularly falling channel. …

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Wednesday Trade Setup: NIFTY Stares At This Level For Support; Avoid Chasing Technical Pullbacks

The session on Tuesday turned out precisely on the expected lines. In the previous note, we had advised against chasing the pullbacks, if any. In line with the analysis, the NIFTY did enjoy a smart pullback in the first half of the session after a tepid start to the day. However, the markets failed …

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Tuesday Trade Setup: NIFTY Oversold; Sustainable Pullback Unlikely Until Global Markets Stabilize

In a unidirectional down-trending session, the Indian markets succumbed once again to the global rout. The markets opened with a deep cut in the opening trade and continued trading in a sideways trajectory while showing no signs to recover from the lower levels despite a few feeble attempts to show …

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Monday Trade Setup: NIFTY To Stay Volatile; Avoid Chasing The Technical Pullbacks, If Any

On a day that can be called a day of extremes, the NIFTY witnessed insane volatility on either side before ending with some gains. The markets saw an immensely weak opening following the overnight rout in the US markets. After opening with a gap down, the NIFTY headed lower and was subject to 10% fr…

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Special Note: Know Where NIFTY Stands From A Broader Perspective; What RRG Tells For The Week Ahead

After the violation of the critical near-term support a week before, the Indian equities suffered its worst-ever weekly decline of the decade. In line with the global mayhem, the Indian stock markets also saw an equally sharp meltdown and went on to end well below the key moving average and slipping…

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Friday Outlook: Global Markets To Influence NIFTY; Trying To Find Bottoms In Isolation May Not Help

In an unprecedented decline across the globe, the Indian equity markets took a massive cut along with the global peers, and in the process, suffered the largest-ever loss in the history of Indian equities in absolute terms. After opening lower following a deep cut in the US markets, the NIFTY remain…

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Thursday Trade Setup: Some Volatile Consolidation Likely; Avoid Chasing Pullbacks, If Any

Despite a robust overnight closing of the US markets after volatile trade, the Asian markets in general and India in particular completely failed to capitalize on the positive set up. The Indian equities saw a modestly negative start to the day, but the markets did not take any directional bias thro…

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Wednesday Trade Setup: Possibilities Of NIFTY Attempting To Stabilize; Avoid Shorts, Stay Selective

An all-out price war triggered by Saudi Arabia following OPEC+’s disintegration gave a rude shock to crude prices, which saw its biggest ever sell-off after the 1991 Gulf War that dragged the Brent crude down by over 25%. Further fueled by the spread of Coronavirus and its potential to disrupt the g…

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Monday Trade Setup: Large Shorts May Lead To Short-Covering From Lower Levels; Stay Stock-Specific

The overnight weakness in the global markets took its toll on Indian equities on Friday and inflicted a gap down opening in the trade. Just like the Asian peers, the Indian equity markets opened with a massive gap down and slid further in the morning trade. After spending two hours on a fragile note…

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Week Ahead: Avoid Chasing Technical Pullbacks, If Any; RRG Suggests Taking Refuge In These Sectors

The global scare of an economic slowdown following the outbreak of Coronavirus saw the world markets taking a severe knock, and Indian equities were not an exception. While trading on anticipated lines, the Indian equity markets saw a wide ranging week wherein the headline index NIFTY moved in the r…

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Friday Trade Setup: Consolidation Likely To Continue In A Broad Range; Watching These Levels Crucial

In a wide-ranged, but the measured session, the Indian equity markets continued to trade on anticipated lines and ended on a flat note. The markets opened on a positive note but soon pared its gains in the initial trade. However, the late morning session saw the NIFTY getting stronger. It not only p…

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