Hope is Not a Strategy ❌
Discipline wins as defence names crack and IPOs rise
⦿ Market Recap:
◦ Monday
Markets opened with an early gap down, but swiftly recovered. Once again, Defence & Aerospace stocks were in action. Falling Crude Oil prices gave tailwinds to related sectors.
◦ Tuesday
A massive gap up greeted the street after news of a ceasefire between Israel and Iran. Ironically, Defence stocks, which had been surging for weeks, tanked aggressively, leading the broader market lower by the session’s end.
◦ Wednesday
Markets opened with another gap up, but failed to show follow-through strength. The decline in defence stocks continued, dragging overall momentum.
◦ Thursday
Indices showed signs of a bullish continuation, but individual stock movement was mostly muted. A classic “squat” day, where price action was sluggish despite index gains.
◦ Friday
Finally, some decisive action! A strong weekly close across many indices. Both NIFTY and BANKNIFTY formed 4 consecutive green candles, reinforcing positive sentiment heading into next week.
⦿ Sector Snapshot: Defence Stocks Hit a Wall
Our defence plays saw a sharp reversal. With aggressive, broad-based selling across the sector, we exited without waiting for a recovery. Always better to exit with discipline than to hope through a breakdown.
⦿ Chart Talk: What We’re Watching
▹ RPOW_R hit AVWAP support, tempting a re-entry. But with it now moved to a 5% circuit limit, we have chosen to stay on the sidelines for now.
▹ Two stocks from the same umbrella group have caught our eye:
RTNIND_A
RTNPOW_R
Both are showing relative strength and constructive patterns; worthy of a close watch.
▹ WAAREEEN_R
After some recent hiccups, it’s starting to look strong again. With clean price structure and volume support, this goes back on our momentum watchlist.
▹ IPO Setups
Some new listings displayed strong momentum this week. Some worth shortlisting for base-building or continuation plays.
▹ NIFTY Near All-Time Highs; But
But it’s important to zoom out and revisit the zone where the previous sharp decline began. That gap, which triggered a 3800+ point drop (15%+), is now being tested for the first time since the fall.
This is a significant technical level.
Take this with a pinch of salt while trading large-cap stocks at this juncture.
The market may face strong supply or hesitation here.
⦿ From the Stocky Mind Community
⦿ Quote of the Week
"In trading, it's not about being right. It's about being prepared when you're wrong."
~ Mark Minervini
See you in the next pulse with Stocky Mind Pulse - 12 🙌🏻
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⚠️ Disclaimer
The information shared in this newsletter is for educational and informational purposes only.
It is not financial advice or a recommendation to buy or sell.
Please do your own research or consult a certified financial advisor before making any trading or investment decisions.