#LETSTALKABOUTMARKETS- NIFTY PHARMA
NIFTY PHARMA HAS BEEN THE OUTPERFORMER IN THIS RALLY, AND IT MIGHT OUTPERFORM FOR THE COMING 18-24 MONTHS AS EVERYONE WILL BE LOOKING FORWARD TO THE VACCINE. NIFTY PHARMA HAD WIDELY UNDERPERFORMED IN THE PAST YEARS MAINLY DUE TO THE INTRODUCTION OF US FDA AND ITS REGULATIONS. SHORT TERM VIEW FOR NIFTY PHARMA- POSITIVE
1. NIFTY PHARMA IS POISED FOR A FURTHER RALLY, IT HAS TAKEN SUPPORT AT THE 7 DAY MOVING AVERAGE AND HAS GIVEN A CLOSE ABOVE IT.
2. RSI, WHICH IS THE MOMENTUM INDICATOR HAS ALSO TAKEN SUPPORT AT IT'S 60 MARK WHICH IS A BULLISH INDICATOR.
3. BOLLINGER BANDS ARE MOVING UPWARDS AND SQUEEZING SLOWLY, WHICH SHOWS VOLATILITY AND RISK IN THE INDEX IS REDUCING.
4. SECTORAL SHIFT SHOWS PHARMA SECTOR WILL PERFORM WELL IN THE LONG TERM.
5. WITH A VERY STRICT SL OF 9150 ONE CAN GO LONG AS IT CAN TOUCH THE HIGHS AGAIN I.E. 9650-9700
NIFTY PHARMA MEDIUM TERM VIEW- NEGATIVE
1. A CLOSE BELOW 9000, WHICH IS A PSYCHOLOGICAL LEVEL TOO WILL TAKE THE INDEX BACK TO 8400-8500.
2. THERE ARE CLEARLY 2 GAPS IN THE INDEX, I.E THERE HAVE BEEN 2 GAP UPS AND GAPS ALMOST ALWAYS HAVE TO BE FILLED.
3. GAP-1 MAY OR MAY NOT BE FILLED AS IT CAN BE A BREAKAWAY GAP WHICH SIGNALS A NEW TREND.
4.GAP-2 MIGHT BE A RUNAWAY GAP AND THEY'RE ALWAYS FILLED. THAT MEANS THE INDEX WILL FALL TO THAT LEVEL ONCE TO COMPLETE IT'S CYCLE BEFORE RESUMING ANOTHER ONE.
5. THIS CAN TAKE DAYS OR MONTHS TO FILL IT UP, BUT THEY ALMOST ALWAYS DO.
TRADE WITH CAUTION AND MAINTAIN A STRICT SL.
1. NIFTY PHARMA IS POISED FOR A FURTHER RALLY, IT HAS TAKEN SUPPORT AT THE 7 DAY MOVING AVERAGE AND HAS GIVEN A CLOSE ABOVE IT.
2. RSI, WHICH IS THE MOMENTUM INDICATOR HAS ALSO TAKEN SUPPORT AT IT'S 60 MARK WHICH IS A BULLISH INDICATOR.
3. BOLLINGER BANDS ARE MOVING UPWARDS AND SQUEEZING SLOWLY, WHICH SHOWS VOLATILITY AND RISK IN THE INDEX IS REDUCING.
4. SECTORAL SHIFT SHOWS PHARMA SECTOR WILL PERFORM WELL IN THE LONG TERM.
5. WITH A VERY STRICT SL OF 9150 ONE CAN GO LONG AS IT CAN TOUCH THE HIGHS AGAIN I.E. 9650-9700
NIFTY PHARMA MEDIUM TERM VIEW- NEGATIVE
1. A CLOSE BELOW 9000, WHICH IS A PSYCHOLOGICAL LEVEL TOO WILL TAKE THE INDEX BACK TO 8400-8500.
2. THERE ARE CLEARLY 2 GAPS IN THE INDEX, I.E THERE HAVE BEEN 2 GAP UPS AND GAPS ALMOST ALWAYS HAVE TO BE FILLED.
3. GAP-1 MAY OR MAY NOT BE FILLED AS IT CAN BE A BREAKAWAY GAP WHICH SIGNALS A NEW TREND.
4.GAP-2 MIGHT BE A RUNAWAY GAP AND THEY'RE ALWAYS FILLED. THAT MEANS THE INDEX WILL FALL TO THAT LEVEL ONCE TO COMPLETE IT'S CYCLE BEFORE RESUMING ANOTHER ONE.
5. THIS CAN TAKE DAYS OR MONTHS TO FILL IT UP, BUT THEY ALMOST ALWAYS DO.
TRADE WITH CAUTION AND MAINTAIN A STRICT SL.
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