#StockUpdate - Yes Bank... Yes or No ?

Hi All,

A lot of you are asking me about Yes Bank. Though there was a sign of relief when it rallied almost till Rs. 78 in October 2019, it has again fallen back to the earlier lows near 30-35 levels.

When it was near these levels earlier, I had suggested a long position with stops below 15-20 levels for an upside till 60-80, which was almost achieved.

Now, on the fundamental front, there is a lot of ambiguity and uncertainty regarding the stock and I did not track it in detail on those grounds (also not interested in doing so... ha ha ha)

Technically, the stock has gradually fallen from 78 to ~ 35 levels now and trades near a monthly support below 29... Back then, the monthly chart of Sep and Oct 2019 had formed a strong Bullish pattern viz. Bullish Separating Lines, however the same was not confirmed as the prices could not cross the pattern high of 78.7 in the following months.

My Plan of Action

1. Investors - Those who are holding it from an investment perspective, as mentioned earlier, the fundamental aspect needs to be checked thoroughly and there are lot of uncertainties. Better to take a view based on financials for the same

One can use these bullish confirmations to average out the position to reduce the average cost if buying, however a detailed look at the fundamentals would surely be advised...

2. Traders -

a. Since the prices are trading near the supports of 29-30 levels, those already holding a positional trade as advised to hold it with that stop loss

b. Aggressive traders can think of buying at current levels of Rs. 35 with stop loss below 29 (closing basis) and targets near 45-48-53 in short to mid term, however important to note that the stock is just trading near support and has not given any other positive confirmation.

c. On a safer side, a long trade can be initiated once we get a bullish evidence on the shorter time frames either weekly, daily or hourly as per the tenure of your trade and act accordingly

In a nutshell, levels of 29 looks like the last ray of hopes for bulls, below which the stock may tumble down further to 23-20-15 levels...

#BudgetUpdate - Buy the Rumour Sell the Fact...As Simple As That . ! ! !

Hi All,

As explained in the earlier Budget Day post, As there was a downward move before the budget i.e. fro 12430 to the Budget day low of 11633, it was expected that Nifty should trade with a positive bias starting this week.

Accordingly, Nifty started the week positively and has already covered more than half of the downfall of budget, already up by almost 2% from the bottom.

On the hourly chart, Nifty gave a strong Bullish engulf pattern on the first candle yesterday and traded straight away with an upward bias.... After the recent price moments, the low near 11600, should act as a strong support going forward, if the rally need to continue upwards. Levels near 11500 as mentioned earlier and 11600 would see a strong buying pressure as it is also a 61.8% retracement of the rally from 11090-12430 levels and hence, any bearish view is only below these levels.

On the up side, Nifty will face immediate resistance near 11850-60 mark, post which 11900-11940 will be crucial levels to watch for which is the hourly Super trend.

If the markets sustained today's Gap up opening,  11700-11750 would be good supports on the lower side...

Plan of Action....

Firstly, though was not advisable on a Budget day, if anyone has taken a short trade suggested below the supports of 11900, must close the short trade as it has done its job by going down till almost 11600 mark.

Going long right now may not be advisable as the risk reward is not favourable and hence, my action would be buy on dips with stops below the supports mentioned on top and marked in the chart.

Cheers

Hrishi...