NIFTY Week of December 25, 2016

Dear Trader, Below is this week's updated Indian share report for the week of Dec. 25-31, 2016 with the best stock picks, educational commentary, and technical analysis for the Nifty 50 and Indian share markets. Please share this newsletter with all of your friends who also trade the Indian share markets. If you have any questions, just reply to this email and I will help you out right away. Regards, NSE Trader The Indian Investor  Week of Dec. 25-31, 2016 Market Timing Mode - NEUTRAL  (though showing some signs of strength & improving) Market Commentary: After a few weeks of stalling at the 20 and 200-day MAs, the NIFTY broke down and sold off to the prior swing low, which was expected in the short-term.  The big question now is will the prior low hold and eventually lead to a tradeable bottom?  Even if the NIFTY is able to reverse higher there is limited upside due to resistance from the declining 10 and 20-day MAs at the first touch. NIFTY Daily Candlestick Chart The monthly chart shows the price sitting on top of a long term uptrend line that has held up for the most part since 2009. A break of and close below the uptrend line has occurred twice, with the price action recovering immediately on both occasions (points 5 & 6). Anything can happen here, all we know is that current market conditions are not stable enough for us to put money to work on the long side. NIFTY Monthly Chart Stock Commentary: There isn't much to get excited about on the long side due to the weakness in the NIFTY. Our only long position STRTECH has held up well, but eventually, without any help from the market the chart will have a tough time making any progress. STRTECH's daily chart is a great example of relative strength, with the price action going sideways while the NIFTY sold off. If the NIFTY is able to bounce off the lows for a week or two, then STRTECH may have a chance to run higher. A move through the Dec. 26 high at 97.00 on a pick up in volume would be ideal. STRTECH Daily Chart For those who are new to trading and are excited to begin buying, you are entering the market at a time when conditions are not ideal for swing trading on the long side. Patience will be key here, as we wait for market conditions and chart setups to improve. Please be sure to develop some sort of risk profile before trading stocks. For example, decide what you are willing to lose as a percent of account value in every trade. If you are new to trading, then keep risk small until there is a strong comfort level. For new traders, we recommend risking no more than 1/3 of 1% of account value per trade. Experienced traders can risk 1% of account value per trade. Trades should not be sized where three losses in a row will result in a 10% drop in account value. Three losses in a row should produce a 1 to 3-4% loss at most. Also, please remember to visit our blog to learn more about our trading strategy that works equally well in both the Indian and American share markets.  Kindly share this newsletter with all of your friends who also trade the Indian share markets. Again, if you have any questions, just reply to this email and we will personally help you out right away.

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