What you mention is the usual thing happening in symmetrical triangles. Its usually a pause before a move in the direction of prior move.
But markets being markets may not have taken what we have understood to heart. 
They have a mind of their own, and so have triangular consolidationsā¦ We have to be cognisant of all possibilities and be ready for any outcome.
Hi @nirvana_laha , About your question on tracking sectoral strength/weakness, this āmarket temperature checkā tool developed by @Worldlywiseinvestors and team may help:
And hereās one more tool:
Hi @hitesh2710 sir,
Wanted your opinion on lower rung financial services & housing finance companies - J M Financial, L&T financial Holdings & GIC Housing?
Although fundamentally, financial sector is doing good, on technical charts, JM financial & GIC has broken 200 DMA and L&T is just hovering around that line.
What should be the plan of action in such cases ?
In the current market mood financial sector is the one which is the worst hit. And when sectoral fancy suffers many a times fundamentals take a backseat atleast for a while. So I think as of now, all the names like GIC hsg, JM fin, LT FH etc have been beaten down and remain under pressure.
Plan of action going ahead depends upon mindset of the investor. If the investor is a true blue value investor, these offer great entry points. e.g GIC hsg which has improving NPAs and decent valuations is available at close to 0.5 times book value. Even if it reaches book value, say in next 2-3 years, one can double the money. But this approach requires patience and pain bearing capacity.
But for someone who wants to play techno funda or pure technical bets, I think there will be some consolidation before any strong move comes around. Markets though have been surprising us both on upsides and downsides since past 1.5 years, ever since Oct 2021 correction, so I wont rule out anything.
Good morning Hitesh sir
Can you share your views on JM financial both technical and fundamental. While the current negative news surrounding international banks can be one reason but it has been in a steady downtrend for the last 3 months or so and has not shown any semblance of resuming its uptrend. After touching 84 it has been a steady decline. Please guide how are you approaching JM FINANCIAL now.
Thanks and best regards .
JM financial has been on a week footing ever since it started correcting from the high of 84. As of now I am awaiting signs of any trend reversal. Fundamentally the management talks of very long term goals, so anyone buying with a fundamental view has to position accordingly.
Hitesh sir ,
Your views on mahindra and mahindra please ?
@Worldlywiseinvestors This is really beautiful. @prabhaker.panditi -thanks for sharing.
Mahindra and Mahindra seems to be a case of a stage breakdown below levels of around 1200. Seems it is better to be careful to rein in bullish views in this counter till the time bullish indications emerge on the chart. Putting up a GMMA chart which clearly shows the crucial breakdown below blue horizontal line.
Your take on Piramal enterprises, Piramal pharma and Aurobindo pharma?Piramal pharma has fallen to a third of its listing value.
what is your view on premier polyfilm? there is no thread regading this company. Sales is growing ,profit is also growing. But there is no interest for this company in market? As i am new, i suspect myself of being wrong.please help
Hi @hitesh2710 sirā¦please share your views regarding swing trading and the indicators that you use during a swing trade
Thank you !!
We have many threads on technicals and most of them cover swing trading in one or the other form. You can go through them. I had started a thread on 52 weeks high and all time highs strategy.
You can also find other threads on stage investing etc which will give you idea about swing trading.
I donāt track premier polyfilm.
@Gothamcapital I donāt track piramal pharma, or auro pharma.
Hitesh Bhai - Any insights that must be considered while foretelling the bottom of an in-progress ābottom formationā pattern? Taking position after pattern confirmation takes away half of the opportunity.
Sorry for pitching in .
Ideally bottom-fishing should be done on fundamentals basis - ie when valuations are low and we have a fair idea that there are some expected tailwinds for the company/sector in near future.
On technical basis ,here are our two cents for a normal investor ::
A) One can look at the weekly and mosnthly charts , RSI divergence can give some help for bottom-fishing
B) Monthly/weekly MACD cycles turning into buy can be used as additional confirmation .
C) Oversold zones in weekly/monthly charts
But in case of above, one need to be cautious as the stock can keep falling for some time despite having the (A) and (C).
These techniques should only be used for taking initial postions - one can keep adding after further price-action. This way one can partially participate in the upside from lower prices .
Somehow we donāt agree that taking a position after pattern-confirmation can take away half the gains.Here are two example son how even a late -entry can give enough gains .
Moldtech
As per stage-investing method , one could have taken half postion at 57 ( 1st yellow line ) and rest after closing above 2nd yellow line ie near 63.
Stock went up to 270 and that is 4-5 X returns.
Green Panel
In this example if someone would have entered at 60 as per Stage Analysis method, he could have made 8-10 times returns. Though entry at bottom could have given more returns but no one can be sure where the bottom is .
That confidence can come only from understanding of fundamentals and market situation.
Following a pattern also helps in entring at the right time when there is going to be momentum in the stock.
Otherwise even if one catches the the bottom , but if there is no future momentum in that stock for coming months or years , an investor would lose the time -value .
For example, power/realty sector stocks did not do anything for 10-12 years, and even if someone has cautght them at the bottom and was sitting on the same for more than a decade, he would have paid the severe price of opportunity-cost .
I think its tough to be into a stock at exactly or very close to a bottom. You can get it right maybe one or two times, but not every time. So I usually wait till atleast some confirmations are there regarding some sort of bottom formation before taking a position.
Fundamentally careful analysis of the company and its prospects would provide with a rough valuation benchmark and that can lead to buy zones and we can throw in a margin of safety to be extra sure. But this picture often changes with market moods. In bearish markets, no low is too low and in bullish markets, no price is too high to buy.
Technically, @StageInvesting has mentioned most of the stuff which is relevant to look out for in bottom formation. I also try to have certain levels for a particular stock I am interested in, where I keenly watch stock price behaviour and if it confirms with what I am expecting, it gives me extra conviction in the process of bottom formation.
In most bottoming cases, we end up seeing tell tale signs of bottom formation on technicals, like double bottom formation, or taking support and consolidation at a support level, or a retracement level, or near previous highs etc. If these are accompanied with something like an RSI divergence or MACD positive crossover etc, then its even better.
However I am not a big fan of forecasting to a precise level. Basically I prefer to be approximately right rather then precisely wrong.
Hi Hitesh Sir !
Titan has been an all weather stock for coffee can investingā¦Your views on Titan after itās entry into clothing and clothing accessories segmentā¦
This is an important observation in my view. Sometime we retail investors get fooled into buying what are called āfallen angelsā because we are anchored to their earlier prices and think āhow much more can it fall (assumption: not much more)ā or āthese are good companies and will eventually catch upā.
I donāt track titan too closely but it has been one of the better compounding stories over the last few years. For companies like Titan which dominate the sector they operate in, once the sectoral opportunities reach maximum potential, it becomes important to find new avenues of growth.
Clothing and clothing accessories can be another avenue of growth, but we have to remember that it is already a crowded space in terms of competition and hence it would be difficult to make headway in this space, unless the company comes out with out of the box products and marketing strategy.
On the charts, it is one of the few compounders that has shown resilience in the current market conditions.
