SENSEX trade ideas
SENSEX BIGG SUPPORT 32612 TREND LINE BREAK SELL ON RISE
SENSEX BIGG SUPPORT 32612
Target profits marked on chart.
BSE India 44K possibleLook at the peaks - Jan 2000, then Jan 2004, then Jan 2008. The next one came an year early in 4Q10 but the one after that again in 4 years - Jan 2015. The next peak at Jan2019 looks feasible. The chart has just crossed the 1.61 fibonacci extension with a strong green candle . Whenever it crosses a fibonacci level with a strong green candle - it is poised to go higher. Talk of overvaluation has already been going on but the bullish crossover of 1.61 extension level makes me feel we may have another 10 months of rally left if there is no deep correction by Feb end
SENSEX again near massive resistance zoneSENSEX again near massive resistance zone. Short with liberal stop above overhead lines
SENSEX - India Stock IndexAs I have mentioned before, this is a very strong support level, you can long SENSEX at the bottom of this region.
Buy India Manufacturing StocksJapan Is Selling Bullet Trains to India
www.bloomberg.com
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Creating Jobs
Modi is also counting on the project to spur a manufacturing and employment boom. His government says it will create 20,000 construction jobs, apart from 4,000 direct and 20,000 indirect jobs for operations. Local companies such as Larsen & Toubro Ltd., Gammon India Ltd. and GMR Infrastructure Ltd. are also looking to win some of the contracts.
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SENSEX Approaching a strong support levelFor now, short SENSEX is not a wise strategy. It is approaching a strong support level. RSI is around 50, means the market is not stable and waiting for a clear path. INDA ind NASDAQ:INDY
Indian market meltdownWe are in the 5th elliot wave zone in India. The global economy(NASDAQ, DJ, DAX) is also at an all time high mostly driven by the tech-sector but there are a few cues which hint a pullback.
1. Failing energy sector: in the past few years thermal and nuclear power plants have seen huge investments but these are facing challenges from the renewable energy sector (wind, solar) as these provide much lower unit rate compared to non-renewable sector.
2. Failing IT, BPO sector: Automation and stricter immigration laws have led to a decline in one of the strongest sectors in India leading to increasing unemployment rate which is a leading indicator for declining GDP ( the GDP numbers might have been kept artificially high to promote investor confidence)
3. Tech-based startups (including FInTech) are highly over-valued. Major investments in this sector are not delivering expected results and companies like TaxiforSure, Snapdeal, Flipkart, Ola, Grofers, Peppertap, Housing.com etc. have seen investment on their potential but there haven't been good returns in the past. Most rating agencies have already downgraded the valuation of these companies and some investors have written-off their loans.
In the period close to Q4'17 - Q1'18 major pullback is expected.
SENSEX LONG TERM BUY SETUP :)BUY CALL :) On SENSEX LONG TERM TRADE
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Sensex clear signal to downside by Diverging RSISensex clear signal to downside by Diverging RSI and BB resistance. Go short on any rallies until BB is breached on closing basis
