Overall trend of world markets is down only but from sharp oversold levels, we are seeing some buying emerging at lower levels. Indian markets opened lower and as was mentioned yesterday they were quite oversold, a bounce came mainly led by cash stocks as they were the ones badly beaten up.
Today Indian Stock Market is likely to open flat and wait for the RBI Policy where analyst are expecting a 25 basis rate cut. Since markets are overall oversold, expect both side movement intraday with neither a big rally nor a big fall.
Level wise Nifty has been in downtrend since 8th July 2019 and we will consider it to come in buy only when it closes above a certain level. (the daily level of Nifty is sent with the message in the evening)
The broader trend of cash stocks is seen by the percentage number of stocks which are above important support levels. Currently they are just 13% of stocks which are above support and 87% stocks are below support. So yesterday some cash stocks did quite well from deep oversold levels. When stocks above support are below 50% we consider cash stocks to be in downtrend and above 50% we consider cash stocks to be in uptrend. Just for your information the cash stocks percentage has been below 50% for majority of the time in last 4 months. This percentage when comes below 10%, we consider the markets as quite oversold and when it is above 90% as quite overbought. Here we also have to see the broad trend of US markets also.
We are explaining the above narration of Nifty trend and percentage for an easy understanding for our trial clients who have registered for a free trial of paper trading in Bank Nifty for a month as we will be sending this message daily in the evening to them on whatsapp.
Today Indian Stock Market is likely to open flat and wait for the RBI Policy where analyst are expecting a 25 basis rate cut. Since markets are overall oversold, expect both side movement intraday with neither a big rally nor a big fall.
Level wise Nifty has been in downtrend since 8th July 2019 and we will consider it to come in buy only when it closes above a certain level. (the daily level of Nifty is sent with the message in the evening)
The broader trend of cash stocks is seen by the percentage number of stocks which are above important support levels. Currently they are just 13% of stocks which are above support and 87% stocks are below support. So yesterday some cash stocks did quite well from deep oversold levels. When stocks above support are below 50% we consider cash stocks to be in downtrend and above 50% we consider cash stocks to be in uptrend. Just for your information the cash stocks percentage has been below 50% for majority of the time in last 4 months. This percentage when comes below 10%, we consider the markets as quite oversold and when it is above 90% as quite overbought. Here we also have to see the broad trend of US markets also.
We are explaining the above narration of Nifty trend and percentage for an easy understanding for our trial clients who have registered for a free trial of paper trading in Bank Nifty for a month as we will be sending this message daily in the evening to them on whatsapp.
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