Analysis of Indian Stock Market for 13th August, 2019

On Friday, the Indian Stock Market opened strong as was expected and remained sideways waiting for some positive news. US and other markets are turning volatile on back of Hongkong and Argentina crisis so expect this volatility to continue for some time.

We got a call from a trial client asking about what will happen on Tuesday to BNF as Friday the US markets were down. A simple reply from our side is not to look at other markets or news and let the markets open again and then we decide next what to do with our long position. Target has been met and we are holding remaining longs positions with a trailing stop loss.

We will put a track record of Bank Nifty Paper trades here for a month for our trial clients and others to see the performance. For our track records we take positions in 240 BNF  and accordingly loss & profit is calculated.  We do profit booking in half our positions at the targets and balance half we hold till the trend remains. On Friday, we kept revising our intraday stoploss and since it was not hit, we are holding our balance half 120 BNF.

Bought 240 BNF at 27950. Half quit at 1st target of 28200. Profit 30000 and balance we are holding on. Whatsapp messages were sent accordingly. So traders who are taking paper trading trial can compare the above messages. (we are not adding brokerage for paper trading). We are still holding our balance half position .

The broader trend of cash stocks is seen by the percentage number of stocks which are above important support levels. Currently there are  29% of stocks which are above support and 71% stocks are below support.  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.


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