Swing Trading - is it Worth the Risk for the week beginning 13-6-22?

  • Stock Market Analysis
  • Editors Pick

Important -

The week that was just concluded was a week that was yet again volatile with unreliable movements in the indices as well as the index heavyweights. From the high of 16610 on 6-6 to the low of 16172, from the close of 16569 on 6-6 to the close of 16201 of 10-6, Nifty had a very hectic and rough ride throughout the week.

Similarly, Bank Nifty had rough and wild swings as well. From the high of 35449 on 8-6 to the lows of 34346 on 10-6, from the strong close of 35310 on 6-6 to the weak close of 34483 on 10-6, Bank Nifty has been beaten down too.

SGX Nifty ended the week at 16,040 which is a fall of another 140 points and clearly, we have yet another red candle day coming up on 13-6.

Are There Any Trades In Sight?

Frankly stating, I would not like that I am not sure what to share this week. Following are the reasons for the same:

  1. On several occasions during the last few days, the indices have moved higher and just when it looked that all seems to be in order, they have hit lower levels either intraday itself or on the following day.
  2. Moves like these are hard to be tracked by technical analysis alone. What has been happening is purely the fact that the selling power of the FIIs is outsmarting the retailers as well as the DIIs.
  3. This is clear from the fact that we have not been able to convincingly close a week and the open the following week on a strong note. This is not a good sign. As I have mentioned in many of my daily posts, we cannot undermine the might of the FIIs and what they are doing is simply selling off at the level where they are willing to.
  4. These levels then become resistance levels and the DIIs are unable to sail past these levels without a great fight and in the process, dry out resources to take the indices further up in the following sessions.
  5. The global cues are weak and the US is witnessing a meltdown of its indices like never before. The economic indicators are also not supported and that is making things hard for the rest of the global markets and the Indian indices in particular.
  6. In view of this, I thought that it would be prudent to simply take a pause from the analysis and see how and where we are able to end the upcoming week. There is no point in listing out stocks that may look good even on the basis of the close as of 10-6 when there is a higher probability of it being undone by the negative price action.
  7. So unless one has super spare funds to spare, it is better to wait for the dust to settle down as opportunities would keep coming if not this week, the following week, or even thereafter.
  8. Sometimes, it is better to just take a breather and watch the proceedings from the sidelines.

On account of the above, I have not performed my weekly sectoral as well as stock analysis as I know that the price action of 13-6 is more likely to change what I would end up recording here as a potential trade.

Here is the link to the video where we talk about the same and a few other things: https://youtu.be/4MXvI4UjggU

So, take some time off, and see you next week in the next episode! I am sure by then, sanity would have been restored in the markets.

Best wishes!

Note: I am not SEBI registered, and this note is shared purely for informational and educational purposes only based on my observations & experiences.

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