Markets opened up strong but remained volatile through out the day. Nifty touched its new high in 2009. Nifty made a high of 5214 before closing at 5187.95 with marginal gain of 10 points Sensex gained nearly 40 points to close at 17401. It seems that the Nifty is facing stiff resistance at 5200 levels. Decisive breakout in the either side is expected. If bought at the lower levels, profit should be booked at the higher levels.

Finally the Nifty have crossed its resistance levels above 5185 levels. Nifty made a high of 5197.90 but closed below 5178 levels. RSI is also trending positive, the same have also crossed above the trendline. MACD is also trying to give some positive divergence. Next week being a short week with the years last expiry month, expect some wild movements in the markets. Inflow in the Indian equity markets is nearly at its all time high at $17.126 bn. Nifty closed below its resistance level of 5185. close above the same will take the Nifty to 5300 levels.

As mentioned in my last blog that the markets are looking heavy and have given a breakout in the downside. Volumes in the markets seems to be dried up. NSE cash market volumes were just Rs.13700CR. On Friday Nifty closed outside the triangular pattern and the RSI too closed below the trendline. Inflation too make higher. Last 2 weeks have been very dry for the Indian markets. Nifty closed at its support levels of 5020. Close below this Nifty will continue to slide till 4900 levels.

==>> Correction on the wayyyyyyy

It’s the same old story that has been repeated. The pain is given again and again, but this time, it can be proved to be fatal. This is the 3rd time the Nifty has been topped up. No doubt the Nifty have made its 2009 high at 5182.55, but the sword till hangs on the heads of the Bulls & the Bears.

Markets for the week ended on the flattish note. Last week gains have been stalled in the current week. Sensex & Nifty closed flat. Small Cap Index was the only index that gained in the week, rest closed marginally down. Capital goods Index was the major gainers for the week closing higher by 3.6%. Bhel contribute the most closing higher by 7%, LNT followed the suite rising 4.2% and Suzlon 4.6%. Telecom stocks also pretty well. Idea surged 9%, Bharti 6.7% and Tata 7.5%. The Metal Index lost 3%, while Sterlite lost 5.5%, Tata Steel & Nalco lost 5%. In the Index Cipla lost 5%, Cairn & SBI lost 2.8%. Midcap and Smallcap stocks gained. Kernex gained 51% in the week. Foursoft & FCS gained 35%, KRBL surged 30%. Time Technoplast, Rain commodities & Manaksia gained in the range of 20-25%. Godrej Properties IPO has come up with the IPO, but Godrej Ind lost nearly 16% in the week. Skumar, GVK Power & Renuka lost 8%.

Markets on Friday closed lower on back of less that expected IIP data. Markets Expected IIP data to be nearly12% mom, but the actual came at 10.3% v/s 9.6% mom. Markets dipped as soon as the IIP data was announced were announced. Cox & Kings which got listed gained nearly 30% on the day of the listing.

Technically the Nifty chart has made a breakout pattern in the downward side. In the chart we can clearly see that the RSI was trading in the triangular pattern. And have given a breakout in the downside. The same was mentioned on my blog www.technicalsvishaldangaich.blogspot.com.

On the first day of the week, Nifty took support of the 20DMA and bounced back on the very next day to close at 5148 levels. Next 3 days Nifty closed with marginal loss and gain. In the expectation of good IIP data and recovery in the global markets on Friday, Indian markets too opened in green. Sensex opened higher and pre lunch period was up high nearly 130 points, but tanked immediately after the IIP data was released. Sensex dipped nearly 100 points down. Nifty made an all time high of 2009 at 5182.55 levels, failing to cross over the 5185 levels as mentioned earlier in my article. Nifty for a quite long time was trading in the parallel trendline. But on the last day closed below the same. RSI which was also trading in the triangular pattern has given a breakout pattern in the downside. Monday trading pattern will give the confirmation for the further movement.

Update on last week’s call
Short Nifty below 5110 tgt 5040-5015- made a low of 5051
Short Tata Steel below 570 made a low of 536
Buy Rcom above 181.50 SL 176. Made a high of 190
In small Cap. Buy Aksh optifiber cmp 21.70. Made a high of 23.75

This week’s call
Short BOB below 496 with SL of 505.
Short BPCL below 626 tgt price 596 SL 634
Sell ICICI bank above 887 or short below 844.

IF Nifty & RSI closes below the trendline then the Nifty chart will have the Tripple top formation that will be bad for the markets. close above 5185 is necessary for further movement, which is unlikely to achieve.. Hold ur trades with suitable SL. ( see the last chart added)

Markets opened by week, but the post lunch session helped the markets close in green. Nifty closed up 23 points at 5134 after making a low of 5084. Sensex closed at 17189 up marginally by 64 points. Nifty chart shows that its is been trading in a very narrow range and in a two parallel trendline. RSI movement is in a triangle pattern. break out either side will decide the further movements. Likely movement is upside. MACD will too give a positive divergence. IIP data expectation are very good, that may lead to breakout pattern in the upside movement. Nifty is likely to cross the 5185 levels. Breakout pattern will be above 5185 only. Close above the same will take Nifty to 5300 levels. Support at 5050 levels. (Watch the Nifty chart)

==>> Brekout pattern above 5185 levels

Markets opened up on a flattish note. In the early trades due to some operators buying in the Nifty futures kept the markets afloat till the mid session. Markets dipped marginally in the red zone, but recovered very fast. Sensex gained more than 200 points to close at 17227 up 244 points while Nifty faced resistance at 5150 levels and closed at 5147 with a net gain of 84 points. Post session buy orders might have surely created panic in the minds of the Bears. RIl gained nearly 2.5%, Bharti Airtel 5%. Nifty which was trading at a premium of just 2-3rs in the early session was at a premium of around Rs.10 in the late hours of the mkts. Bulls are trying again to make a breakout in the Nifty which is only above 5185 levels. This is the 3 time the Nifty will try for the breakout above the same. RSI have also taken support at the trendline. MACD might also show positive divergence. Breakout can only be above when the Nifty close is above 5185 levels.

Last week the markets were bad, on back of the ongoing cash crunch in the Dubai. But the markets recovered smartly on the next day itself. Markets opened with the bang on the very first day. Nifty recovered and closed above the psychological figure of 5000. Abu Dhabi continued their downward journey, but the impact was not felt in the Global markets. Dubai is not the only place were the people have over spent. There may be many ‘Dubai’s’ lying hidden around the world. China or India could have some of those places too which are over spending and over leveraging. In the last 2-3 years the borrowings from the cash starving companies have grown at a very fast speed. But a slight correction in the Indian markets in early 2008 made a disastrous situation for the companies who have raised money via FCCBs. Over borrowing internal and the Global market can lead to disaster in the Indian markets too in the coming years.

This week major indices recovered. BSE Index gained nearly 2.7%, while NSE outperformed by surging almost 3.3%. Small Cap index was the winner by gaining nearly 6.5% on week to week basis. Index gainers were Tata Motors which surged 12.5% while Unitech and RIL surged in the range of 4-5% and DLF 8.2%. Hero Honda & HUL lost almost 4.5%. Pharma Index gained 6.6%. Ranbaxy contributed the most 13.5% and Cipla by 12.5%. Frontline gainers were Sail 11%, Hindalco 10.5% and Nalco 8.5%. In the telecom stocks Idea gained the most 12%, Rcom 7.5% & Bharti 9.2%. In the Aviation stocks Jet continued its flying streak by gaining 27% in a week, Spice Jet gained 25%. Other Midcap stocks gainers were Rama Newsprint 62%, Tata Elxsi 31%, Nelco 27%, Sasken 24% & Hexaware 19%.

Takeover war of Great Offshore, between Bharti Shipyard & ABG Shipyard is finally come to an end. ABG Shipyard left the war in between just a day before the day of the open offer. ABG Shipyard sold its holding in Great offshore and made handsome profits of Rs 52cr in few days. ABG gained 13% in a week, while Bharti Shipyard gained 43%. But Great offshore lost 3.5% on week to week basis.

Last week on Friday, Markets recovered smartly. Nifty bounced back after making a low below 4800 levels on back of the ongoing issues in Dubai. Nifty took support at the 20DMA. But the markets bounced back sharply on the very next day. Nifty opened with a gap and closed above the 100DMA. The rally continued on the next day too. But in the last 3 days Nifty is finding it hard to close above the recent high of 5185 levels. Nifty have made a Doji pattern in the last 2 days. As mentioned in the last week too that Nifty will find resistance at the 5185 levels. If we check the Bollinger band pattern, we may see some wild movements in the near future. Bullish Breakout pattern will be above 5185 levels only. Nifty will find support at 5036-5015.

Short Nifty below 5110 tgt 5040-5015.

Short Tata Steel below 570

Buy Rcom above 181.50 SL 176.

In small Cap. Buy Aksh optifiber cmp 21.70.

Nifty finding it hard to cross the recent high of 5185. Once again tried to cross the 5185 mark, but the selling pressure pushed the Nifty down to 5123 after making an Intraday low of 5106. Markets opened up strong. Sensex opened nearly 150 points positive. but the markets were very volatile. Sensex high an intra day high of 17361. Due to Volatility Sensex closed down at 17185 levels. Nifty made a high of 5181. As mentioned in my earlier article also that the Nifty will continue to face resistance at 5185 levels. As per the Candlestick pattern, we can see that the Nifty in the last 2 days is making a Doji pattern on the upper side. If the Nifty trades below today's close, then i would suggest that the Buy positions should be avoided temporary. Buy positions should be taken only if the Nifty trades above 5185 levels.

Last week the Nifty made an Intra day low of 4806 and bounced back sharply on the same day, and since that day markets continued to gain. Today Nifty closed at 5118.55 after hitting an Intra day high of 5161.75. It seems so that, Nifty is finding good support at the 4800 levels but still facing resistance at 5185 levels (recent high). Buying seems to happening only in the front line stocks. Mid cap stocks is lacking way behind. Seems that the markets still facing some resistance at the higher levels and lacks confidence. Traders are waiting on the side lines to get involved in the markets. Nifty above 5185 will give bullish breakout signal and that will lead to another round of short covering till 5300 levels. Nifty will continue to have support at 5015 levels.
Short Rel Capital below 845 with tgt of 807. SL 860
BUY Axis Bank with SL of 1041.
BUY HDFC bank close above 1810 with Sl of 1802