$NIFTY $SENSEX November Monthly iMTF™ Market Update. The Indian stock market continues to make new high’s. In November, we made another high too.
Note: All charts are provided by TradingView for this article
Below is the monthly chart.
Since Feb 2004, the India stock market has been in a long term bullish trend. There was a medium pullback in 2016 but the market has yet to experience a major pull back.
Here is the current monthly chart. Since the market has been making all-time new high, we have to use $Fibonacci extensions for resistances. The next major resistance is 10528 with a support 9733. In November, we got close to reaching this value but missed it by a couple of points. The lower time frames will tell us if we still have a possibilty of reaching it.
Below is the weekly chart. The weekly is strong and shows no signs of weakness at all right now. There is a multiple time frame support 9970.00. As long as this support holds, no major pullback in regards to long term will occur.
Below is the daily chart. It shows a multiple time frame resistance at 10378.
In conclusion, the Indian remains in a strong bullish trend short and long term. If the multiple frame support at 9970, then the market will undergo a short term pull back. If the multiple time resistance at 10378 breaks, the market will proceed to next major resistance making new high again.
Here is a list of India stocks that are completely bullish.
Here is a list of India stocks that are completely bearish.
With the Indian market making new high, it is very hard to find a good bullish trade with a good reward/risk. The reason is you do not know if the market will keep on making new high. Therefore, you have to minimize your risk and trade pull back or breakout on lower time frames.
We are approaching the end of the year. One of the things we like to do is example instruments that did not do good this year. These companies could possible recover next year and have a good reward/risk in the process.
In looking at the bearish list above, lets examine $Drreddy.eq-nse. Below is the quarterly chart. We are examining quarterly because the monthly has been registered to be bearish. We need to find the long term support which is the higher time frame.
The chart is bullish very long term. It is trying to go through a major pull back which is why all the lower time frames are bearish. The major support at 1906 is holding. This is the 61.8% Fibonacci many traders are paying attention too.
The resistance holding this bearish trend is 2471.00.
Here is the monthly chart. The bearish setup has triggered but no follow up has occurred. As long as the resistance holds, the monthly still can go bearish.
In conclusion, we will be looking for the resistance to possible break in 2018. If so, this can be a good bullish trade on lower time frames with a good reward/risk.
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