Published on: October 24, 2024
Every trader and investor dreams of mastering the age-old mantra – buy low, sell high. It sounds simple, yet the reality of catching market tops and bottoms can feel elusive. You are not alone if you have been striving to perfect this skill for years.
But let us face it – relying on luck can lead to overconfidence. Instead of throwing darts blindfolded, what if you had a systematic approach to identify market tops? Consider confirming a topping structure rather than fixating on a specific price point.
That’s where RZone by Definedge Securities comes in. We are excited to introduce our innovative Definedge Momentum & Performance Chart (DeMAP) feature. While we have shared insights and videos about DeMAP, let us dive into a live example of its application in today’s market scenario.
A Snapshot of the Current Market
Before we delve deeper, it’s important to clarify that we are not making a market prediction or commentary. Instead, we are illustrating how DeMAP has responded to recent market movements.
As of now, the Nifty index hit a high of 26,277, with an overwhelmingly bullish sentiment. However, October brought a sudden shift, with the market declining approximately 6% in just five trading days. DeMAP began to signal a distribution phase in the broader market during this period.
Nifty50 Chart
Let’s rewind to October 4, 2024. The Nifty closed at 25,014, and the slope of the benchmark indices started to show concerning signs.
Then came October 7, when the markets corrected by another percentage point, and the Smallcap index dipped—this was the first warning sign. Despite a brief bounce, investor sentiment urged many to “buy the dip,” but DeMAP remained cautious. We highlighted this in our Weekly Newsletter, emphasising the need for vigilance.
From the Nifty’s bounce between 24,800 and 25,200, it has since plummeted by 850 points to a recent low of 24,341—and the market is still in a downward spiral. 😉
I hope you are excited to check today’s chart, aren’t you?
With DeMAP at your side, you can confidently trade these turbulent waters.
Why Choose DeMAP?
Using the Definedge Momentum & Performance (DeMAP) Chart, you can get the access to advanced market analytics that empower you to make informed decisions. Our tool helps you spot trends and reversals before they become apparent to the masses, allowing you to act swiftly and strategically.
The question isn’t just when markets are tiring but how prepared you are to recognise and respond to these shifts. With DeMAP, you won’t just follow the market—you will lead it.
