December 2020
CONSOLIDATION SETS IN – OR IS IT DISTRIBUTION ? ? ?
Trading levels 1st / 4th December 2020
As I had written last time, the high tide seems to be ebbing and it looks like consolidation – at least that is how marketmen are interpreting it. BUT IT COULD WELL BE BEGINNING OF DISTRIBUTION PHASE. ONLY TIME WILL GIVE THE ANSWER IN NEXT 4 / 6 WEEKS.
MIDCAPS AND SMALLCAPS HAVE OUTPERFORMED LARGECAPS WHOLE OF LAST WEEK. This means - we may be entering the last days of current bull phase and one needs to be ultra cautious while entering these stocks which are showing big daily and weekly moves.
We must look at smaller pharma companies carefully ( around 1000/2000 crore mcap variety ) as GRANULES – CARLYLE development may lift these stocks by 20/30 % next week.
This may well rub-off on speciality chemicals space as well. Watch out for those stocks also.
I am booking profits on most midcaps / small caps as it is becoming difficult to justify some valuations.
You may continue to enjoy the party as long as the music goes on ….
I had earlier talked about negative divergences on daily and weekly charts. Most of the daily divergences have got negated. But negative divergences on weekly charts have infact got stronger. Let us see when they will show their hand.
DIVERGENCES ON DAILY CHART HAVE RE-EMERGED AND WILL TAKE THEIR TOLL IN COMING WEEK.
MORE AND MORE INDIANS ARE NOW LOOKING TO DIVERSIFY BY INVESTING OUTSIDE INDIA AND ALSO IN PHYSICAL ASSETS LIKE GOLD AND SILVER. KEEPING THAT IN MIND, I HV STARTED GIVING WEEKLY LEVELS FOR US INDICES / GOLD AND SILVER. I HOPE THESE WILL BE USEFULL.
Indices weekly levels
|
position trading |
weekly |
DATE |
1st / 4th December 2020 |
|
|
stocks / indices |
go |
entry |
Target |
Stoploss |
|
cnx nifty |
short |
13000 |
12930/860/790/720/650 |
13070 |
|
|
long |
13070 |
13140/210/280 |
13000 |
|
BSE SENSEX |
short |
44150 |
43900/650/400/150 |
44400 |
|
|
long |
44400 |
44650/44900/45150/400 |
44150 |
|
bank nifty |
short |
29600 |
29250/28900/550/200 |
29950 |
|
|
long |
29950 |
30300/650/31000 |
29600 |
|
cnx IT |
short |
21800 |
21600/400/200/21000 |
22000 |
|
|
long |
22000 |
22200/400/600 |
21800 |
|
US INDICES |
||||
|
dow 30 |
short |
29800 |
29500/200/28900/600/300/28000 |
30100 |
|
|
long |
30100 |
30400/700/31000 |
29800 |
|
S&P500 |
short |
3630 |
3585/540/495/450 |
3675 |
|
long |
3675 |
3720/65/810/55/900 |
3630 |
|
|
nasdaq composite |
short |
12210 |
12130/050/11970/890/810/730/650 |
12290 |
|
long |
12290 |
12370/450/530 |
12212 |
|
|
dollar index |
short |
91.81 |
91.71/91.61/91.51/91.41/91.31/91.21 |
91.91 |
|
long |
91.91 |
92.01/92.11/92.21/92.31/92.41/92.51 |
91.81 |
|
|
DOLLAR PRICES FOR GOLD / SILVER |
||||
|
CRUDE |
short |
47.85 |
47.2/46.55/45.9/45.25 |
48.5 |
|
long |
48.5 |
49.15/49.8/50.45/51.1 |
47.5 |
|
|
GOLD |
short |
1789 |
1764/39/14 |
1814 |
|
long |
1814 |
1839/64 |
1789 |
|
|
SILVER |
short |
22.6 |
22.28/21.96/21.64/21.32/21 |
22.92 |
|
long |
22.92 |
23.24/23.56/23.88 |
22.6 |
|
POSN TRADING |
daily close trigger |
DECEMBER 2020 |
|
|
|
stocks / indices |
go |
entry |
Target |
Stoploss |
|
NIFTY SPOT |
short |
13008 |
12814/620/426/232/038 |
13202 |
|
long |
13202 |
13396/590/784 |
13008 |
|
|
SENSEX |
short |
44400 |
43750/100/42450/41800/150 |
45050 |
|
long |
45050 |
45700/46350/47000 |
44400 |
|
|
BANK NIFTY |
short |
30000 |
29600/200/28800/400/28000 |
30400 |
|
long |
30800 |
31200/600/32000 |
30400 |
|
|
CNX IT |
short |
21900 |
21500/100/20700/300/19900 |
22300 |
|
long |
22300 |
22700/23100/500 |
21900 |
|
|
POSN TRADING |
daily close trigger |
DECEMBER 2020 |
|
|
|
stocks / indices |
go |
entry |
Target |
Stoploss |
|
NIFTY SPOT |
short |
13008 |
12814/620/426/232/038 |
13202 |
|
long |
13202 |
13396/590/784 |
13008 |
|
|
SENSEX |
short |
44400 |
43750/100/42450/41800/150 |
45050 |
|
long |
45050 |
45700/46350/47000 |
44400 |
|
|
BANK NIFTY |
short |
30000 |
29600/200/28800/400/28000 |
30400 |
|
long |
30800 |
31200/600/32000 |
30400 |
|
|
CNX IT |
short |
21900 |
21500/100/20700/300/19900 |
22300 |
|
long |
22300 |
22700/23100/500 |
21900 |
|
|
POSN TRADING |
daily close trigger |
DECEMBER 2020 |
|
|
|
stocks / indices |
go |
entry |
Target |
Stoploss |
|
NIFTY SPOT |
short |
13008 |
12814/620/426/232/038 |
13202 |
|
long |
13202 |
13396/590/784 |
13008 |
|
|
SENSEX |
short |
44400 |
43750/100/42450/41800/150 |
45050 |
|
long |
45050 |
45700/46350/47000 |
44400 |
|
|
BANK NIFTY |
short |
30000 |
29600/200/28800/400/28000 |
30400 |
|
long |
30800 |
31200/600/32000 |
30400 |
|
|
CNX IT |
short |
21900 |
21500/100/20700/300/19900 |
22300 |
|
long |
22300 |
22700/23100/500 |
21900 |
|
|
POSN TRADING |
daily close trigger |
DECEMBER 2020 |
|
|
|
stocks / indices |
go |
entry |
Target |
Stoploss |
|
NIFTY SPOT |
short |
13008 |
12814/620/426/232/038 |
13202 |
|
long |
13202 |
13396/590/784 |
13008 |
|
|
SENSEX |
short |
44400 |
43750/100/42450/41800/150 |
45050 |
|
long |
45050 |
45700/46350/47000 |
44400 |
|
|
BANK NIFTY |
short |
30000 |
29600/200/28800/400/28000 |
30400 |
|
long |
30800 |
31200/600/32000 |
30400 |
|
|
CNX IT |
short |
21900 |
21500/100/20700/300/19900 |
22300 |
|
long |
22300 |
22700/23100/500 |
21900 |
|
