TRADE RECOMMENDATION 04.07.2020

FROM THE DESK OF CAPT.D.GANESH RAJA :

THE CURRENT SCENARIO IS EXTREMELY VOLATILE AS FAR AS GEOPOLITICAL EVENTS & INDIA-CHINA STANDOFF IS CONCERNED SO IT IS A GOOD TIME SEE THE READINGS OF THE QUANT SYSTEM & TRADE RECOMMENDATION BASED ON IT. THE VARIOUS TIME FRAME OF THE TRENDS ARE ALSO SYSTEM DRIVEN WHICH GIVES A GOOD IDEA FOR ASSET ALLOCATION.

1. NIFTY : LAST CLOSE – 10244. THE VIX HAS BEEN STEADILY DROPPING AND THE INDICATION IS STABILITY IN MARKET FOR SHORT TERM & PROBABILITY OF VOLATILITY SPIKING UP IN INTERMEDIATE TERM.

THE CURRENT RALLY SEEMS TO EXTEND TILL ZONE OF 10666 TO 10710 & WITH ELLIOT TIME ZONE PREDICTION INDICATING THIS HAPPENING BETWEEN 15.07.20 TO 22.07.20 (IF THE DATES FALL IN A HOLIDAY NEXT TRADING DAY COUNTS).

THE GAP BETWEEN 10751 TO 10827 SEEMS A STRONG RESISTANCE IN CONGRUENCE TO MULTIPLE FIBONACCI LEVELS. IN DAILY CHART WEDGE FFORMATION IS ANOTHER INDICATION OF RESISTANCE AT 10808.

CONCLUSION: TRADE NIFTY TO THE LONG SIDE WITH 0.5X LEVERAGE (SYSTEM BASED LEVERAGE) WITH A MINIMUM PROFIT POTENTIAL OF 4.1%.

MINOR TREND : UP INTERMEDIATE TREND : DOWN LONG TERM TREND : DOWN

2. RELIANCE INDUSTRIES: LAST CLOSE – 1787.90 . GO LONG WITH STOP LOSS AT 1670. TARGET 1- 1912 TARGET 2 – 2300. MINIMUM PROFIT POTENTIAL OF 6.94%. LEVERAGE – 0.25X.

MINOR TREND : UP INTERMEDIATE TREND : UP LONG TERM TREND : UP

3. BPCL: LAST CLOSE – 384.40. GO LONG WITH STOP LOSS OF 367.0. TARGET 1 – 430.0 TARGET 2 – 467.

MINIMUM PROFIT POTENTIAL – 11.8%. LEVERAGE – 0.20X

MINOR TREND : UP INTERMEDIATE TREND : NA LONG TERM TREND : DOWN

4. EICHER MOTOR : LAST CLOSE – 18983. GO LONG WITH STOP LOSS OF 17970. TARGET 1- 19699 TARGET 2 – 20899.

MINIMUM PROFIT POTENTIAL – 3.7% . LEVERAGE – 0.15X.

MINOR TREND : UP INTERMEDIATE TREND : NA LONG TERM TREND : DOWN

5. GOLD: LAST CLOSE – 46531. GOLD IS IN NO TRADE ZONE. IT IS CONSOLIDATING AT THESE LEVELS AND MIGHT CORRECT TILL 45000 LEVELS BEFORE RESUMING UPMOVE.

MINOR TREND : SIDEWAYS WITH DOWN BIAS INTERMEDIATE TREND : UP LONG TERM TREND : UP

6. USD – INR: LAST CLOSE – 74.84. SHORT THIS CURRENCY PAIR WITH STOP LOSS AT 75.89. TARGET 1 – 72.0

TARGET 2 – NA. MINIMUM PROFIT POTENTIAL – 3.79%. LEVERAGE – 0.5X.

MINOR TREND : UP INTERMEDIATE TREND : BOTTOMING OUT INDICATION LONG TERM TREND : DOWN WITH BOTTOMING OUT INDICATIONS.

TOTAL LEVERAGE OF ABOVE TRADE RECOMMENDATIONS: 1.6 X

COMBINED PROFIT POTENTIAL FOR ABOVE TRADES : 8.59%

TIME WINDOW OF TRADES : 12 TO 25 DAYS