TRADE IDEA ON HEROMOTOCO FOR 21 SEP

“BUY HEROMOTOCO AT 1526 TGT 1545/1565”

"SELL HEROMOTOCO AT 3469 TGT 3430/3400"

HEROMOTOCO  is showing correction since past few sessions and also sustaining above lower trend line support level 3470. Currently it has formed reversal pattern on the short term charts and trading below the resistance level of 3510.Breakout of its resistance level may show recovery in it where traders can expect targets of 3550 and 3580 while major support of 3450 can be placed as technical stop loss.

CANDLESTICK VIEW: BLACK OPENING MARUBOZU

A Black Opening Marubozu indicates that the sellers controlled the price action from the first trade to the last trade.However, the day does not close at the low, and thus creates a lower shadow.This candlestick is generally bearish. However, its position within the broader technical picture is also important. It may show a potential turning point and suggest that prices have reached to a resistance level after an extended rally (Bearish Belt Hold Pattern). If it is seen after a long decline, it may signal panic or capitulation, a final sell off attempt before bulls regain control. Still, the candlestick alone is not reliable enough to decide the direction of the markets, since it reflects only one day’s trading

EVENTS TODAY & TOMORROW:

The US Federal Reserve policy makers begin their two-day policy meeting today, 20 September 2016. The Fed is expected to keep its benchmark interest rate unchanged in the wake of recent downbeat US economic indicators. The Fed left the target range for its federal funds rate unchanged at 0.25% to 0.5% for the fifth time during its July 2016 meeting.

Nifty below 8,800; US Fed, BoJ meets eyed

The Sensex ended with a loss of 111 points at 28,523. The Sensex opened at 28,691 touched an intra-day high of 28,699 and low of 28,481.The Nifty closed with a loss of 33 points at 8,776. The Nifty opened at 8,816 hitting a high of 8,816.45 and low of 8,759. The Indian equity market snapped a four-day winning streak on Tuesday led by profit booking, coupled with negative global cues and caution ahead of major global financial events. Now Technically, Nifty has entered into positive zone .For now, traders can go long in Nifty at every dip in the market. Nifty may see some immediate resistance at 8850 levels breaching which Nifty would see a sharp positive rally.

TOP GAINERS:  Dr. Reddy's, ONGC, Maruti Suzuki, Cipla, M&M, Asian Paints

TOP LOSERS:  Hero MotoCorp, Bharti Airtel, Adani Ports and Infosys