Trading Plan for Friday
Market Sentiment: Neutral to Bullish
Weekly Volatility Risk: High
Supports to Watch:
Immediate Supports: 5155 (major), 5146, 5140, 5133 (major), 5125 (major), 5118, 5113, 5106 (major), 5101, 5088-92 (major), 5084, 5073, 5065, 5057-60 (major), 5052, 5046, 5040, 5032-29 (major), 5022, 5018, 5013 (Major), 4998-5000 (major), 4994, 4987, 4983 (major), 4976, 4965-70 (major).
Resistances to Monitor:
Key Resistances: 5155-58 (major), 5167, 5175, 5190 (major), 5197-5200, 5209 (major), 5217, 5229-32 (major), 5243, 5254, 5262-65 (major), 5272 (major), 5282, 5287 (major), 5300 (major), 5308, 5316 (major), 5331, 5344 (major).
Trading Strategy:
Capital Preservation Friday: Prioritize capital protection ahead of aggressive positions. Limit risk exposure to 20% of previous gains.
Cautious Longs: Focus on potential longs at 5155, 5133, 5125, and particularly 5106. Look for bounces or reclaims of support levels for long entries.
NFP Volatility: Anticipate heightened volatility and potential traps in the 30 minutes following the NFP data release at 8:30 AM. Approach with caution.
Bull Case:
Trend Continuation: Bulls remain in control on longer time frames. A successful defense of the 5155 level and ideally, the 5133 support, would pave the way for a base-building pattern below 5170 before retesting 5190 and the macro magnet levels above.
Adding on Strength: Monitor for potential bull flags above 5150 or failed breakdowns of flag supports for long entries.
Bear Case:
Breakdown Signals: A breakdown below 5146 may signal a move down the levels. Watch for failed breakdown setups and bounces before considering short positions.
In Summary: The trend remains bullish, but increased volatility and NFP release require a cautious approach. Focus on capital preservation, targeting potential longs at key support levels.
News: Top Stories for March 8, 2024
Stock Market Strength: The S&P 500 continues to reach new all-time highs.
AI Stocks Drive Tech Sector: AI-focused companies, particularly Nvidia, have spurred growth in the technology sector.
Federal Reserve Policy: The Fed held interest rates steady at its last meeting and plans to maintain them at current levels ahead of the March 20 meeting. Rate cut expectations are rising for later in 2024.
Indian Economic Outlook:
Moody's raises India's economic growth forecast to 8% for FY24, citing strong domestic demand and government spending.
The Reserve Bank of India governor also anticipates GDP growth near 8%.
Global Outlook: J.P. Morgan economists expect the global economy to avoid recession despite monetary tightening, but they predict an end to global expansion in mid-2025.
Inflation and Currencies: US inflation, measured by the CPI, rose more than expected in January. Sterling climbed to its highest since August, bolstered by potential rate cut expectations for the ECB and Fed.
Other Highlights
UK-India free trade agreement faces potential delays.
Crude oil prices declined slightly, and gold prices increased.
Bitcoin's rally is attributed to its limited supply.
Disclaimer: This analysis is for educational purposes only and is not financial advice. Always consult with a professional financial advisor before making trading decisions.
Market Sentiment: Neutral to Bullish
Weekly Volatility Risk: High
Supports to Watch:
Immediate Supports: 5155 (major), 5146, 5140, 5133 (major), 5125 (major), 5118, 5113, 5106 (major), 5101, 5088-92 (major), 5084, 5073, 5065, 5057-60 (major), 5052, 5046, 5040, 5032-29 (major), 5022, 5018, 5013 (Major), 4998-5000 (major), 4994, 4987, 4983 (major), 4976, 4965-70 (major).
Resistances to Monitor:
Key Resistances: 5155-58 (major), 5167, 5175, 5190 (major), 5197-5200, 5209 (major), 5217, 5229-32 (major), 5243, 5254, 5262-65 (major), 5272 (major), 5282, 5287 (major), 5300 (major), 5308, 5316 (major), 5331, 5344 (major).
Trading Strategy:
Capital Preservation Friday: Prioritize capital protection ahead of aggressive positions. Limit risk exposure to 20% of previous gains.
Cautious Longs: Focus on potential longs at 5155, 5133, 5125, and particularly 5106. Look for bounces or reclaims of support levels for long entries.
NFP Volatility: Anticipate heightened volatility and potential traps in the 30 minutes following the NFP data release at 8:30 AM. Approach with caution.
Bull Case:
Trend Continuation: Bulls remain in control on longer time frames. A successful defense of the 5155 level and ideally, the 5133 support, would pave the way for a base-building pattern below 5170 before retesting 5190 and the macro magnet levels above.
Adding on Strength: Monitor for potential bull flags above 5150 or failed breakdowns of flag supports for long entries.
Bear Case:
Breakdown Signals: A breakdown below 5146 may signal a move down the levels. Watch for failed breakdown setups and bounces before considering short positions.
In Summary: The trend remains bullish, but increased volatility and NFP release require a cautious approach. Focus on capital preservation, targeting potential longs at key support levels.
News: Top Stories for March 8, 2024
Stock Market Strength: The S&P 500 continues to reach new all-time highs.
AI Stocks Drive Tech Sector: AI-focused companies, particularly Nvidia, have spurred growth in the technology sector.
Federal Reserve Policy: The Fed held interest rates steady at its last meeting and plans to maintain them at current levels ahead of the March 20 meeting. Rate cut expectations are rising for later in 2024.
Indian Economic Outlook:
Moody's raises India's economic growth forecast to 8% for FY24, citing strong domestic demand and government spending.
The Reserve Bank of India governor also anticipates GDP growth near 8%.
Global Outlook: J.P. Morgan economists expect the global economy to avoid recession despite monetary tightening, but they predict an end to global expansion in mid-2025.
Inflation and Currencies: US inflation, measured by the CPI, rose more than expected in January. Sterling climbed to its highest since August, bolstered by potential rate cut expectations for the ECB and Fed.
Other Highlights
UK-India free trade agreement faces potential delays.
Crude oil prices declined slightly, and gold prices increased.
Bitcoin's rally is attributed to its limited supply.
Disclaimer: This analysis is for educational purposes only and is not financial advice. Always consult with a professional financial advisor before making trading decisions.
