So this is my 1st post in this newsletter so forgive me if I make any mistakes :)
Let’s take a look at how markets are placed for next week and I’ll be sharing my positional picks that i myself have bought for swing/positional trade.
Let’s start with NIFTY 50 - So last week nifty ended it’s losing streak and bounced back sharply after making a low of 15680.
This week it crossed an important Pivot level which was 16815 where 200 EMA was also present and on Thursday we ended the week with a strong gap up.
FIIs turned net buyers after continuously selling for 2 months and that gave some boast to the markets.
For the next week the key thing to watch is if this gap gets filled or not, 17175 needs to be upheld for any further up-move otherwise we can expect a pullback till 16815 level.
Global markets also showed some recover with S&P 500 bouncing back from an important support level, although it went below it but bounced back sharply with S&P 5OO gaining for 4 days consecutively.
Commodities also cooled off with Gold coming down to 1920$ after making a high 2060$ and Oil coming down to 105$ after making a high of 130$.
Dollar Index also taking a break after hitting it’s Double bottom target. CMP - 98.229$
Now let’s take a look at the few Swing/Positional trades I took last week -
1st one is CUMMINS INDIA, it gave a strong Symmetrical triangle breakout with 200 EMA moving up with the price.
I took at position at 1026 with SL at 980 for a target of 1200 as I believe if the breakout successful then the stock should not go below the downward sloping trendline.
If it hits my SL then I’ll go out with just small 4.5% loss.
The 2nd Trade I took is of UNITED SPIRITS OR MCDOWELL - It showed good strength and was taking support at it’s previous high of 2015 at 800-815.
It went below that level during the broader market sell-off with recovered quickly and gave a Declining Triangle Breakout.
I entered at 908 with a very small SL of 2.7% at 885 for a target of 1020.
3rd I took a little bit risky reversal bet with PIX TRANSMISSION - After a huge selloff after it’s Q3 results the stock is slowly trying to recover and forming a ascending triangle with the GAP at 920 acting as a strong resistance.
I entered at 902 with SL at 850 for a target of 1070, although in this case a slightly big SL 6% but I may not for the SL to get trigger if the falls below the lower trendline.
Thankyou for reading, i will try to post one weekly market update on every Sunday and if you haven’t subscribed already, what are you waiting for?
CUMMINS INDIA also fundamentally looks good from green energy initiatives as well as data center infrastructure.