Fruits Investments Newsletter #6
Weekly review of the financial market and commenting on what's ahead.
Hello Peeps! Hope you all are doing well.
Ruthless selling all over the Indian market and world market continued this week.NIFTY fell till 17683 and BANKNIFTY made a low 35908. The US market and other world markets also saw huge selling. The new variant news has certainly accelerated this fall and made all furious. let’s see and discuss what’s coming ahead and our plan of action for this coming week & month.
We will discuss
NIFTY
BANKNIFTY
Sectors & Stocks
World Markets & Instruments
Bitcoin, Ethereum, and coins to keep watch on.
Let’s begin!
NIFTY
NIFTY is near a very crucial level 17000 also the head & shoulder pattern breakdown is in play here. As of now according to option chain, the biggest put writer is @ 17000 but seeing their weak confidence we won’t be able to sustain @ 17000 and can go down till 16700, I believe. Longs on NIFTY will be only above 17500 till then it’s a sell-on-rise thing.
BANKNIFTY
The weakest structure BANKNIFTY broke all the important supports and now if it breaks 36000 then it’s definitely going to test 34500. Although BANKNIFTY has before consolidated in the range 34500 - 36000 before hence it makes a nice support zone to show stability and stop the damage. Long in BANKNIFTY only above 38000 although you can scalp good move in this range, 36000-38000. All the Constituents of BANKNIFTY look weak and are trading near important support levels. HDFC BANK, AXIS BANK, INDUSIND BANK, etc.
All trades in FnO of NIFTY & BANKNIFTY should be taken with tight stop loss and with no carry-forwards.
SECTORS & STOCKS
All major indices were in deep red all this week. While some indices started their fresh breakdown like NIFTY METALS and breakout in NIFTY PHARMA.
Also, one important thing here is INDIA VOLATILITY INDEX (INDIA VIX) is not cooling off. It was trading in the range of 15-17 till last to last week and now it has crossed 20 which itself is a sign of danger. Also on its weekly chart, it shows a breakout.
NIFTY IT is also weak. No support from big boys like INFY & TCS. The underperformance of NIFTY FMCG continues weak performance from HUL BRITANIA and ITC. Taking cues from NASDAQ and DOW JONES Indian Inc. has certainly shown that this fall is not just a normal correction anymore. FIIs have been huge sellers they have sold almost 57700 crores in October and November. It gives no confidence in buying as of now. The correction in NIFTY SMALLCAP and MIDCAP is deeper and dangerous wait till the market controls its fall to add names from these indicies. NIFTY PHARMA stocks look good to me on buying side like DIVIS LAB, CIPLA, and SUN PHARMA.
Be cautious it’s the best time to accumulate your favorite good-performing stocks.
US Markets and other parameters
DOW JONES NASDAQ and S&P500 showed dangerous correction on Friday. Due to Thanksgiving the markets were on holiday on Thursday and had low volume and fewer working hours a day on Friday. But all other world markets witnessed a big fall be DAX, FTSE, NIKKEI, HANG SENG, or KOSPI.
Parameters like Dollar Index have been trading in a higher trajectory only. GOLD is showing consolidation in the higher zone. CRUDE has shown a fall of 13%.
BITCOIN
BITCOIN has been on a correction spree for the last 2 weeks as of now it is @ near important support of $52000-$53000. I believe till $50000 it will be full of friction. The range from $50000 to $53000 makes a no-trade zone. It is better to wait for the breakdown of the$53000 zone to take short but long only above $57800 levels.
ETHEREUM
Ethereum looks weak here in a shorter timeframe. On a daily, if it breaks $4000 high chances that it will test the $3600 zone. Long in ETHEREUM is only above $4200 levels.
Coins that add in dips (Please trade with your own due diligence and risk understanding)
BNB
MANA
ENJ
SAND
DOT
AXS
AVAX
Bad times don’t last but bad guys do.
That’s it from my side guys.
See you next week.
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Ciao!