Price Action for making Investment Decisions (Weekend Newsletter Dec 14 2019)

Fear kills more dreams than failure ever will.

1. State of the Economy: Terrible 🙁
   State of the Sentiment: Depressed
   Nifty near All-time High
2. Nifty in CY2019: +11.27%
3. Everyone, well may be not everyone, but certainly a lot of people have been worried about market and economy. Is Fear discounted in price?




4. Leadership stocks – the stocks that continue to march higher: 1. Reliance; 2. ICICI Bank; 3. HDFC; 4 Kotak Mahindra Bank; and 5. Bajaj Finance
5. One Large Cap that has stunned everyone in 2019 with its outperformance over the last 14 months: Bharti Airtel. It’s up 65% from the base of 260 levels. It helped us discover DLF trade. DLF now up +50% in 2 months
6. Large Cap Breakouts deliver best returns over an 18-24 month time frame. The Large-cap Breakout of 2019 we are keeping an eye on
7. The best significant breakout of 2019: Berger Paints. A vertical breakout that delivered 50% returns in no time




8. Reliance broke out after 10 long years in Feb 2017 and now has trebled in Value. The Next Explosive Lage Cap Breakout waiting to happen
9. Nifty is trading near all time high but these 3 Large Cap stocks standing at Line of Support. Will bulls buy and take it higher?
10. When a stock trades below Line of Resistance, they underperform. These 3 Large Cap stocks trading below Line of Resistance
11. The sector that stunned everyone this year with its outperformance – Non-Lending Financial Services. Bajaj Finserv, HDFC AMC, HDFC Life, ICICI Prudential Life, ICICI Lombard, SBI Life – all have rallied like crazy. The 3 new opportunities that we discovered in this space
12. When a bull market develops in a sector, it touches new stock every other week. A strong bull market is developing in this theme
13. In the stock market, people love to follow Investing themes. 3 themes to keep an eye on in 2019
14. Great stocks leave behind footprints which other stocks can follow. Which stock might follow DMart stock chart trajectory?
15. When stocks turnaround, they have the potential to surprise. One Technical Turnaround in Action right now
16. Patience matters when it comes to investing. Sometimes stocks can test your patience and drive you crazy
17. What is Deep Value Investing when it comes to Price Action
18. Four NBFCs continue to be in strong Bull market
19. Never Ignore a stock that makes a large candle move. Here’s one success story of 2019
20. “You will not be punished for your anger, you will be punished by your anger.” – Buddha [Never attempt a revenge trade no matter what the provocation is. It solves nothing]
21. We are emotional people. We fluctuate irrationally between an aversion to losing and our own delusional optimism ~ Richard Thaler

ChartSource: Chartalert.com [Indian Stocks]

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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers