A lot of distribution days piled up in a short time recently. Pattern: Inverted Flag. A close below 17613 with above avg vols wud confirm a downtrend and the start of panic selling. Rather one can say it's at a major support zone.
NSESMLCAP: At a major junction. 2 weeks to decide
Important key: Major winners of the Covid rally are either in STAGE 3 or entered STAGE 4. Major tops are seen in many past winners, more tops coming soon. The next 2 weeks are very crucial. AUTO & INFRA to stand out in strength.
NIFTYAUTO: Some scope here. Many auto stocks are setup strong with major earnings this week.
Not listening to the market is a flaw
Listening to people, watching TV: Bad habits
Stage Analysis: Break the market into 4 stages. 1. STAGE 1 2. STAGE 2 3. STAGE 3 4. STAGE 4
2/n
Sometimes the simplest system is the best system.
Ideal buy point is when stock comes out of stage 1 & enters stage 2
Stage analysis works completely against the normal market participants
Psychology=Inverse(What needs to b done in the market)
Stages are determined wrto KMA
3/n
B.O. sud b accompanied wit vols
Establish position from stage 1 B.O and retest.
Look for stocks with no upward resistances
Bigger the stage 1 base the better
The sector is important: can dramatically improve returns
Check for 2 years of resistance.
TSLA, 2019(6 yrs base).
FAZE3: Real Round Cup & Base formation at the peak.
Outlook: AR2021
By Rule of 72:
At 18%, The Income wud double in 4 years.
The Income growth seems conservative.
Fundoos:
~Highest ever Quarterly revenues since inception.
~Topline & Bottomline Acceleration
~Seems to be a breakout in Earnings in the last 3 years.
~Being a small player seems to take the Margins hit.
Two things I have seen yesterday but not quantified yet.
1. Most of the NIFTY50 or biggies r below 50dma and looking to kiss 200dma.
But, the Index is hanging above 50dma for some strange reasons.
2.
Internally the stocks falling below 50dma in the whole universe has widened
There wud b tons of breakouts reversals to be seen.
Some choosy sectors/names would run.
Most good to great results r discounted specially in IT & PHARMA.Textiles stocks r giving fab results & the moves r discounting the earnings breakout above multi-year average.
Lastly, I am seeing vintage stocks or stocks with long bases which I have been tracking for long Breaking out now.
Case: TEJASNET
It has been in key list for way too long. Last 4-5 days r continuous circuits and cleared the trigger point convincingly.