Education

How 21 EMA saves you from market correction?

Green colour - 21 EMA
Blue colour - 50 EMA

The leaders during this time become choppy

Note

Check -> 7 June - 26 October
Infosys (IT Leader)
HDFC Bank (Finance leader)
Ranbaxy (Pharma leader - Now merged with Sun Pharma) so check Dr. Reddy.

After 26 October only IT was leading Pharma became choppy and HDFC Bank and ICICI Bank were moving up because of IT related loan disbursal

Note

From 26 October 1999 - 24 November 1999 market was below 21 EMA
Infosys and Nifty 500 both made a bottom on 2 November

Note

2 November 1999 - 9 March 2000 (Above 21 EMA)
Infosys led the rally
HDFC Bank and ICICI Bank moved because of tech based funding
Dr. Reddy's was just moving choppy

Only IT, Telecom led the rally for that Check HFCL BSE chart it stayed consistently above 21 EMA until 31 March 2000

Note

9 March 2000 to 5 June 2000

Clear downtrend no leadership

Note

5 June 2000 to 18 July 2000

NO FRESH HIGH made IT and Telecom bounced and we fell again

Note

18 July 2000 to 22 August 2000

We went below 21 EMA before that we did not made fresh high and then fell again

Note

22 August 2000 to 18 September 2000.

Bounce in IT stocks (Infosys) but no new highs.

Note

- 18 September 2000 to 2 November 2000
- 2 November 2000 to 21 December 2000
- 21 December 2000 to 4 January 2000
- 4 January 2001 to 21 February 2001
Just chopping around 21 EMA we did not follow through to the upside after making a high

Note

21 February 2001 to 20 April 2001
Ketan P. scam was exposed. We went below 21 EMA on 21 February 2001.

mohit_sidana

Also on:

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

mohit_sidana

Also on: