Charts for the Day

I am Still carrying earlier posts view of still many stocks have not done basing. So any rally immediate would meet resistance. As expected it requires huge groundwork for clearing falling 50 SMA.

Expect a sideways move, till basing gets done for a rise further towards 50 MA again. or else if its a weak market then slowly it will break recent supports of 9300-9320 / 9050/ 8800.

Many newcomers are in confusion is what is basing means. It is nothing but sideways consolidation in stocks to show some signs of accumulation by big players. Now what is signs of accumulation by big players. For me its a many tight zones in base and better if first leg of fall gets tested in base with slightly less volumes. And price jumping back into base and those bars having big spread with high volumes. Sometimes stocks can rise with 'v' shaped pattern too. But stick with known patterns where you can trade off. Its not mandatory to trade every sign market is giving. Focus on your strength.

Bear markets rallies are deceptive and led to many investors getting attracted to leaders of past bull run. In hope that again these horses would run. There is no rulebook to say such things. Better play stocks showing good relative strength as compared to mainline indices.
Many queries reaching on mails and stunningly almost all queries pertain to stocks which are either hitting 52 weeks lows or already in severe downtrend. Dont know why people are interested in buying stocks at lower prices. Dabbling at monthly supports understandable but still i would say avoid if you dont understand the game. Seen people are holding multibaggers of previous bull run in midcaps & smallcaps. And those are still in downtrends.

If something is hitting 52 weeks high its showing strength inherent built into it. Thats why moving up. Similarly if something is hitting 52 weeks low, respect market it knows better than us. Someone big exiting stocks thats why stocks hitting 52 weeks low.

One query came about bajaj finance. I said stock into downtrend and 'trying' to make base. Only concern is volume is too high at these levels. so better to avoid. In short i am still not convinced about its bottom yet. I may be wrong for my analysis. I am not here to catch bottoms. Because i know i dont have character to sit tight during base making with high volatility gap ups and gap downs. My game is let the scrip prove its strength first holding good at 50 MA and then i can dabble few. And more if its above 200 MA. Thats it. And for scrip trending up above 200 SMA its a safest play out there.

So only thing i can say is, 'Know your Game'.
Nifty Update:

Lot at stake today. Hourly charts which are in strength till today have last chance to prove mettle. Else there is impending daily pressure can put into downtrend again. Hourly charts are deteriorated in morning hour closing. So whatever it can achieve is today else more selling may be seen.

Resistance 9375-9400.
Support 9120 / 8850
Nifty Update:

We had major weakness only below 9000-9025 levels nifty yesterday prevented breach on downside. Todays gap up was above 50 SMA on daily. Morning opening high didnt sustain and we are falling from same levels.
We still had view of sideways in this range.

Yesterday we had stimulus package announcement and fineprints will come from today onwards. Its best to be stock specific and too for stock in uptrend. Avoid bottom fishing, you may succeed once but when trapped then it takes heavy toll on account.

Action would be around 50 sma. more it sustains below it weakness would creep in.