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Gemstone Equity Research & Advisory Services

Blog posts April 2020

Thursday Trade Setup: This Level To Act As Inflection Point For NIFTY; Risk-Reward Unfavorable At Current Levels

In a much buoyant than expected day, the NIFTY continued inching higher with too many things happening too fast as the index ended with substantial gains despite coming off its intraday highs. The markets saw a positive and steady opening to the trade and gradually kept inching higher. The late afte…

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Wednesday Trade Setup: NIFTY To Get Incrementally Vulnerable In Present Technical Setup; Stay Vigilant At Higher Levels

It was yet another day of a precarious trade as the Indian equity markets inched higher to end on a positive note. The NIFTY saw a strong start to the day, but after the initially stable opening, the markets failed to capitalize on the buoyant opening. The index gradually pared all its gains to end …

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Tuesday Trade Setup: NIFTY Stays Vulnerable In Present Technical Structure; Adopt Defensive Approach

Despite ending on a positive note, the Indian equity markets continue to remain in a relatively precarious position on the daily charts. The NIFTY saw a much better-than-expected start to the week. The index a strong opening to the day and maintained its gains for the first half of the session. The …

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With No Signs Of Equities Bottoming Out, These Two Charts Tell An Interesting Story

After declining over 35% from the 2020 peaks, the global equity markets found a temporary base, and in the current technical pullback, it has recouped over one-third of its total losses. Traders and Investors alike have formed different opinions on whether the Equities have bottomed out while they p…

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Monday Trade Setup: Tepid Start To The Day Likely; Watching These NIFTY Levels Crucial

While continuing to say in an area formation, the Indian equity markets snapped its technical pullback and ended the day on a negative note. The markets saw a negative opening, but it managed to recover the bulk of the opening losses by afternoon trade. However, the recovery did not sustain, and the…

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Week Ahead: Upside In NIFTY May Stay Capped; RRG Chart Says Perhaps It Is Time To Reduce Weight On This Sector

In the previous weekly note, we had mentioned the loss of momentum in the technical pullback that the markets had started to witness. In the week that has gone by, the loss of momentum became more evident. Despite a 500-point oscillation and a trading range, the NIFTY halted its pullback and ended w…

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Friday Trade Setup: NIFTY Moves Higher Inside The Rising Wedge; Guard Profits Near These Levels

The advance in the equity markets continued as the NIFTY moved higher and ended with gains while continuing to stay in a rising wedge formation. The markets saw a flat start to the day but went to test the 9300-mark by afternoon gradually. However, at one point, the NIFTY gave up the majority of tho…

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Thursday Trade Setup: This Level To Act As Reliable Support As Per Weekly Options Data; Stay Stock Specific

In our previous note, we had categorically pointed out that despite a gap that was created, it may be insignificant and may not have bearish implications as it had occurred with an area pattern. While continuing to trade on dotted lines, the NIFTY saw short-covering from lower levels and ended the d…

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Wednesday Trade Setup: NIFTY Creates A Gap Within Area Formation; How Significant Is It?

The markets refused to move out of the area pattern and displayed the bearish tendencies on the expected lines as the Indian equity markets ended with a deep cut. Although we can blame the overnight weak global trade setup, the internal technical structure too remained quite weak as elaborated in ou…

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Outlook For Tuesday: NIFTY Stays In The Area Pattern; Stay Light And Stock-Specific In Approach

In the previous daily note, we had highlighted the formation of a Rising Wedge pattern on the daily chart. The Indian equity markets continued to trade precisely on the anticipated lines and failed to move pas the upper trend line resistance of the wedge. The markets saw a much stronger-than-expecte…

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Monday Trade Setup: Emergence Of This Pattern Not A Good Sign For Nifty; Exercise Cautious Approach

The markets extended the technical pullback on the last trading day of the week as the headline index went on to end with a decent gain. The Indian markets saw a gap up opening on Friday. However, after opening on a stronger-than-expected note, the markets once again failed to capitalize and gradual…

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Week Ahead: Loss Of Momentum May Be A Slight Worry; RRG Chart Shows These Sectors Languishing

After a sharp technical pullback in the week before this one, the Indian equities continued with the extension of the pullback, but on a very modest note. The trading range over the past five days remained broad as the NIFTY oscillated in a 500-point range, but kept the net incremental gains quite l…

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Friday Trade Setup: NIFTY's Price Action Against These Levels Crucial To Watch; Vigilant Protection Of Profits Advised

The markets on Thursday traded precisely on the expected lines as the weekly expiry of the options dominated the trend for the day. The 9000 levels had a maximum accumulation of the Call OI; this prevented the NIFTY from going beyond this point, more so in the second half of the trade. After witness…

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Thursday Trade Setup: NIFTY Likely To Resist This Level As Per Weekly Options Data; Cautious Approach Advised

In the previous technical note, we had mentioned the importance of the 9050-9100 zones and the kind of resistance that it can give to the NIFTY while it attempts to move higher. The Indian equity markets enjoyed a strong start to the trade as it opened after a gap of one day and adjusted to the glob…

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Wednesday Trade Setup: This Level Likely To Act As Inflection Point For NIFTY; Guard Profits On Either Side

It was a day of consolidation for the markets on Monday as the headline index traded in a defined range and ended in the negative. The Markets saw a quiet opening but soon slipped in the negative in the early morning trade. The first half was spent by the NIFTY recovering from the morning lows; the …

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Monday Trade Setup: NIFTY Likely To See A Stable Start; Staying Above This Level Crucial

The markets ended the last day of the truncated week in style while ending on a strong note, piling up some more gains. The markets opened on a positive note on Thursday and traded in a capped range initially in the morning. After that, the NIFTY stayed stable throughout the day and kept marking inc…

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Week Ahead: NIFTY May Get Vulnerable At Higher Levels; RRG Suggests Continued Focus On these Sectors

After several negative weekly closes, the Indian equity markets finally ended its losing streak this truncated week as it finally ended with gains. In our previous weekly note, we had categorically mentioned the possibilities of a sharp technical pullback despite ongoing uncertainties because of the…

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Thursday Trade Setup: Weekly Options Expiry To Dominate The Trend; NIFTY Remains In A Broad Range

The session on Wednesday remained precisely on the anticipated lines. Not only did the markets saw an extension of the technical pullback, but they also resisted exactly above 9050-9100 zones and came off from those levels. After a negative opening, the NIFTY soon scaled higher in the morning trade …

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Wednesday Trade Setup: Extension Of Technical Relief Rally Likely; Guard Profits Near These Levels

In the weekly note, we had mentioned the strong possibilities of the Indian equity markets staging a strong technical relief rally. On the analyzed lines, the markets saw a very healthy start to the truncated week as the NIFTY opened higher, got even more potent, and ended the day with a massive gai…

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Tuesday Trade Setup: NIFTY Likely To See A Technical Relief Rally; No Confirmation Of Any Bottom Yet

The weak global setup took its toll on Indian equities as well as the markets saw a lower opening and went on to end the day on a negative note. The NIFTY witnessed a positive opening but soon slipped in the negative in the initial minutes of the trade. After trending sideways in a 120-point range, …

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