Sensex-Stock Market Trend Analysis

Sensex-30 Days Historical Data with DMAs for Stock Market Trend Analysis

The following historical data is self-explanatory and self-guided toolkit for investors, traders and new entrants. If key figures are observed carefully and in detail, with reference to the ongoing financial policies of the respective country, geopolitical situations emerging across the globe, FED policy declarations, etc., it can provide valuable insights into market trends.

Pay attention to key figures, such as the nearest DMA and the previous high and low figures by plotting them on the daily chart along with Open interest in calls and puts will help in determining support and resistance levels, as well as identifying breakout and breakdown levels. Nifty50 chart can be seen below for fixing levels.

Forming equations for Stock Market Forecasting:

In the Nifty50 intraday trading chart below on 05.12.2024, heavy manipulation was observed, but it was relatively easy to predict by plotting key figures on the daily chart. When key levels of Nifty were surpassed, a breakout was observed, and when these key levels were broken, a breakdown followed. Additionally, after the breakout in the late hours, Nifty crossed the 24,800 mark, a level where heavy short positions on the call side were observed, which acted as resistance to further upside. Later, just before the closing hours, Nifty found support at the 24,500 level, and another breakout occurred. This 24,500 support level was created by shorts on the Put strike at 24,500 and below.

In this was key figures can be utilised to forecast market movements.

Guidelines to use above data for Stock Market Trend Analysis

Note: After range bound of market for a day or two, intraday high range trade is witnessed, based on the trend of the market.

1. Regular study and analysis of historical data provide a guideline for market prediction.
2. Levels of DMAs, Previous High, Low to be observed by plotting them on yearly and intraday charts, if these levels are broken, may lead market to breakout or breakdown.
3. When downside movement starts, Index may find support of nearest DMA or previous low, if broken, further downside may be seen.
4. When upward movement starts, Index may find resistant of nearest DMA or previous high, if broken, further upside may be seen.
5. For accurate results, corelate Index with change in Open Interest (Call & Put) of nearest Strike Price and Total Open Interest for Strong Support or Resistant.
6. It is strongly advised to consider other parameters including Financial Policies of respective countries and GEO Political situations across the Globe.
7. Once the trend of market is clear, any opposite action of market may be used to take position for successful trades as per Trend.
8. Trend of Stock Market may be detected through significant change in open interest of calls and puts.

Disclaimer

The content provided on this website is for informational purposes only and should not be construed as professional financial, investment, legal, or tax advice. The information presented on this site is based on the author’s opinions, research, and publicly available information, and is intended for general guidance. It is not a substitute for consulting with a qualified financial advisor or other professional.