==>> High volatility seen in markets

Yesterday Nifty had taken a good support at the 2nd trendline, that was marked earlier. Nifty bounced back in the mid session after making a low of 2812 and close above 2929. As mentioned earlier that the Nifty has a good support at the trendline that is nearly 2800 levels. But in the 3rd chart we can see that the red line is trying to cross the yellow line from above, In the past we have seen that if this scenario happens then we may see some down trend in the markets. There are less chances of markets to come down, till the time it is staying above the yellow line.Keep ur positions light. Further move will be decided after the break out from both the trendlines. Trade with strict stop loss. Yesterday i have given call to buy Satyam at 131. The stock have outperformed the market. Imediately after the opening the stock was nearly 3% down, rallied to close at 148.25 after making a high of around 159.

The markets three week rally have been broken, with the BSE Index closing down nearly 7.63% or 770 points and the Nifty closing 7.16% down. None of the 30 index stocks made gains last week. I have mentioned on Friday 19th that we may see some correction coz the Nifty is trying hard to close above 3100 levels but not able to. In the last week we saw Sensex and Nifty falling by around 7.5%. See chart (marked by 1) the Nifty has fallen and closed below the 1st trendline. Nifty is taking support at the 2nd trendline (marked by 2). RSI has also been falling. We might see some more correction till 2800.
Short term del call 15 days, BUY SATYAM COMP, keep ur own stop loss cmp 131

==>> Japan, Germany, Canada unveils economic aid, while Belgian govt falls

Nifty opened week and slided in the neagative teritorry immediately. Nifty closed at 3039 after making a high & low of 3110 & 3027 respectively. Nymex crude bounced back sharply to cose above $42 per barrel. It was obvious that the automobile companies will be benefited from the bail out. As such the amount was not that big, it was like a peanut, when the US government ca provide nearly $800 bn bailout program then $14bn was nothing for them. Otherwise the closure of these units have created more unemployment for the the US.
As mentioned in my last blog also that we might see some profit booking or correction, in the coming week, coz the pattern that was created in the Nifty chart, showed some sign of correction. But the Nifty still have a good support at the trendline.
Japan, Germany & Canada [ledged new measures on Sat to confront a financial crisis in the banks, auto industry. Belgian govt also falls. Tokyo joined govts worldwide in pledging hundreds of billions of dollars of fiscal stimulus to lessen the impact of the crisis on their economies, many on which included, are already in recession. Total stimulus package amounts toY10tn. Canada also approves addtional package of $3.3bn.

Markets today had a very volatile session, Nifty and Sensex kept on trading from positive to negative zone. We might see some profit booking or correction as Nifty is trying hard to close above 3100. Nifty closed at 3077 after making a high of 3106. Nymex crude is trading near its 4 yr low of $33.5 per barrel.

Yesterday we had a great bounced back in our markets. Sensex after a over long break closed above 10000 levels. Nifty closed above at 3060. In the chart attachecd above we can clearly see, Nifty took good support at trendline. In the past also Nifty have take support of the same trendline and bounced back. Inflation has dropped down below 7% and the oil have also fallen below $40 per barrel. The fall in the inflation rate has been majorly due to the fall in the oil prices. Oil trading near 4 year low. Opec cut in the production have not helped to stablise the prices. Rupee have also bounced back sharply. Volumes were also pretty good as compared to the last months volumes

==>>FDI down 26%, Exice- customs down again

Since the start of Dec FII has been Net buyer for around Rs. 2,000 Cr as compared to Rs. 550 Cr in the same period last month. Yesterday since morning we saw a lacklusture market. But as informer earlier, we saw a great movements in the B group shares. Every 5th share was on the upper circuit. Sensex made a high of 10009 but failed to cross above the 10000 mark. Nifty closed at 3041 after making high of 3052. Rupee has also closed below 48 mark. When the rupee was trading near 50 there were many analyst predicted the the rupee to touch 53-55, the same have turned bullish and now they expect it to touch 45. Crude prices have been falling. FDI down 26% in Oct
Excise collections in Nov fell 15% year on year to rs. 8556 cr. This is the 2nd consecutive month when both excise and customs duty collections have been fallen.

==>> Home loans turn cheaper

Markets opened on the stronger note today. Nifty after a very long time traded above 3000 levels. Sensex made a high of 9948 and closed at 9832. Nifty and the Sensex both have a psychological resistance level at 3000 & 10000 levels respectively. Nifty target as in the near future given by me was 3200 and Nifty has a good resistance at 3152 levels.

From Tuesday all 28 state owned banks wil charge a concessional rate of 9.25% for loans below Rs.20 lakh and 8.5% for loans below Rs.5 lakh. The interest rate for micro industries has been cut by 100 bps, while for small and medium enterprises, it has been reduced by 50 bps. Both existing and the new customers will benefit from the move. But SMEs expected more rate cut.

Advance tax is less then expected. Indian Markets are not following the US markets, neither the US markets. In the last few trading sessions, our markets have outperformed the global markets.

Inflation for week-ended November 29 is at 8% versus 8.4% (WoW). Yesterday global markets were also good. In the morning Indian markets also opened up strong but immediately after the opening Nifty and Sensex both were trading in red. Todays session was very volatile. We did see a sharp movements in the frontline stocks like RIL, SBI, Infosys. In the closing session markets recovered on the news of additional stimulus package for the Indian Economy. Fall in the crude price have really helped in the GDP of India. US job less claims hits a 26 year high. Jobless claims for the week ended Dec 6, was 5,73,000.

==>> Nifty closes above 2900 and Sensex above 9600 levels

As mentioned earlier that the Nifty chart is showing good strenght and there will be rally. Today markets opened on a strong note. Both Nifty and the Sensex opened positively and the rally contiuned. Sensex closed up around 492 points and Nifty by 144. Nifty made a high of 2937.3 and while Sensex crossed 9600 levels.Some follow-up buying was also seen in commodity stocks due to government's fiscal stimulus package, which was announced on Sunday. Strong Asian markets was another reason for today's rally. US markets futures also jumped up on hopes of tentative auto rescue package.
Volumes were also good as compared to yesterday. Nifty's cash volumes were Rs.9400 crs. and today it was Rs. 11500 crs. Few weeks back also i have informed me that the traders can bet on the reality and the banking stocks.

==>> Economic Stimulus package gives a boost to market

I am writing after a long time as was personally busy with my studies. Sorry for the same.

The las week has been very volatile. Global markets also showed some positive actions. Indian markets also saw the same reaction. Markets opened with a big bang on the much awaited economic stimulus package. Today on 081208 we again saw a bit of volatality. For the major of the session the Nifty and Sensex both was trading well above the 4%, but in the ending we saw a sharp decline. The Sensex which was around 350 points fell down sharply and closed down near 200 points only. It was majorly due to the news of fire broke out in reliance refinery. Ril which was trading well above nearly 2.5% fell down to just 0.5%. That was the only major news that pulled the Indian markets down.
Technically speaking, the markets have been in a very good mode. In the chart we can see that in the last week the Nifty has taken a very good support at the Trendline( marked by 1). We may see same movements in the future also for atleast 2-3 trading sessions. A dessive breakout above the trendline will take the Nifty above 3200 levels. Breakout below can take the Nifty again to 2700 levels. But looking at the chart positive movements are expected. RSI (marked by 2 ) has also been in the positive movements. Both the RSI and the Nifty daily chart has been moving in the same direction. Volumes (marked by 3) have also been good in the last few sessions. There is a positive trend in the markets.
The govt has been very busy through the last week, that resulted rate cut by RBI and economic stimulus package. This was followed up with a fiscal stimulus package on Sunday wherein its single most important move was reduction in the Central value added tax (Cenvat) by 4% across the board to boost demand. It also announced a Rs.20,000 crore additional non-plan expenditure to stimulate the economy. The aim of the fiscal measures is to bring back some life into the economy with a specific eye on boosting infrastructure growth, lift up the sagging exports, improve the beleaguered housing and auto sectors.
In the past also i have said that the Indian markets will outperform the global markets, as the Indain markets are not that much in red till now. The size of the stimulus package in India is not big coz India industries are not feeling that heat. Quaterly results of Oct- Dec will triger the movement further on.