Do Onions make u cry???

This is not only Onions which make my cry, but u name any commodity in the current scenario is making me cry. Vegetables, Metals, Milk products, Crude, etc etc. You name anything; you will find their price almost at their all time high.

Onions do make people cry, but the real guys are the one who produce and consume them. Farmers sell their onions to the middle men for just mere 4-5Rs in Nasik and the same is consumed by the consumers at the price of Rs.60-65. The wholesalers and the Retailers rig up the prices so much that the government finds it difficult to control the same. Few days back Indians were exporting Onions to other countries and now will be Import the same. Till now the Government had their eyes closed. The import will again cost Indian economy. I hope now there is no SCAM in this. Otherwise this would be another one to add to the never ending list of Scams. “Onion Scam”, how funny this could be. …. Now after so much pain the govt will interfere and the price will be bought down to Rs30-35, and finally the consumers have to consume at that price.

The US economy expanded at an annual rate in the third quarter. Economist projections ranged from 2.5% to 3.3%. Growing incomes, the continuation of Bush-era tax cuts and an improving labor market may encourage Americans to boost their spending, which accounts for about 70% of the world’s largest economy. US consumer spending rose for a 5^th straight month in Nov and incomes rose slightly more than expected.

But on the other side the UK economy showed slow growth rate, as compared to the estimate in Q3. GDP rose 0.7% from the previous three months. The ECB will lend banks 149.5bn Euros ($196.8 bn) for three months to meet their liquidity needs over the year end period.

Japan economic growth will slow in the fiscal year from April to only half the pace of the current year due to weak exports and consumption. Data this week also showed a pick up in export growth in Nov, but that failed to temper caution about overseas demand because it was partly due to Yen’s pull back from its 15year highs.

Euro gained against the dollar and recovered from all time lows against the Swiss franc, after the announcement of China to buy Portugal’s debt worth 5b Euros. Fitch downgraded Hungary one step to BBB-. The outlook for major of the rating companies are negative, which means they are more likely to reduce the rating to junk that to raise it or keep it changed.

Global markets remained lackluster due to the year ending. Indian markets closed marginally up with a very narrow range. Weeks Turnover was at their lowest levels since 2008 levels. Nifty and Sensex gained just 1% in the week. Smallcap Index gained the most. Index closed 1.8% higher then its previous close, while Midcap Index closed marginally up. Meta Index gained the most in the sector wise performance. It grew 4%. IT index gained 1.8% and Auto Index closed higher by 1.2%.

Hero Honda after its dramatic part with the Honda group tanked in the last few weeks, but gained the most this week. The stock closed up nearly 15%. Rcom surged 10.5% on rumors that some kind of merger is possible in the company. Metal stocks like Sesagoa, Sterlite Ind & Hindalco surged higher in the range of 7-8% while Jspl was up just 4.5%. Ranbaxy, Sunpharma gained in the range of 4.5% -5.5%. On the other side DRL tanked 5.5%, Bpcl corrected 3.8%. Tata motors stocks witnessed some profit booking and corrected3%. ONGC and Sail both corrected nearly2% each.

On the midcap side Bindal Agro surged nearly 45% in a week. Bf 21%. Jubilant Food 13.5%, Pipavav 10%. Sugar stocks rallied in the last 2 trading sessions on back of resuming trading in futures in the commodity exchange. Sugar prices are once again gaining grounds and seem to getting ready for its another dream in the coming year.

Crude Oil is all set to pinch the pockets of everyone. Crude oil had topped almost $93 per barrel and is all set to touch $110.

In the last few trading session the Nifty was facing resistance at it 50DMA and its long term trendline. On Friday Nifty did try to break the same but could not succeed in the same. Sensex closed once again above 20K. Gaining nearly a percent, Sensex closed at 20073.66. To the break the head and the Shoulder pattern, Nifty need to close above the 50DMA and 6070 levels. Nifty once again took support at the 23.6% retracement levels and bounced back marginally. Macd has given some positive divergence. Nifty will find support at 5932-5890. Nifty will find resistance at 6033-6070-6090 levels.

The speculation is there that the Indian markets will witness heavy selling in the month of Jan and the start date will be 3^rd Jan. Leading brokerage house have come out with report mentioning that the 03^rd Jan to be the day from where the Indian equity markets will start its downward journey. Personally I would not believe this. I would rather go technically in the market and wait for the proper opportunity to grab.

Last weeks call performance.

Sell Dr Reddy below 1787 SL 1798 tgt 1776-1753. Tgt achieved. Made a low of 1616

Sell HUL price tgt 289-284. SL triggered.

Buy Icici with a SL of 1101. Made a high of 1145.

This weeks Call

Buy SBI with a SL of 2730 tgt 2792-2805.

Sell Ultratech Cement below 1040 SL 1045 tgt 1030-1018-1007.

Sell Torrent Power with SL of 270

Sell Tata motors belo 1303 SL 1307 tgt 1286- 1269

Buy Suzlon above 51 SL 49.50

Buy Sunpharma above 470 SL 467.

Buy Relcapital With SL of 641.

Buy Rcom with SL of 132.

The estimation is that the Spain has to raise Euro170bn ($226bn) next year, while refinancing needs for its regions total E30bn and for banks around E90bn.

Easing inflation has given the Reserve Bank of India (RBI) enough room to leave interest rates on hold at its policy review. And, as expected the bank has left all rates unaltered. Thus, rates including repo, reverse repo, cash reserve ratio (CRR) stand unchanged at 6.25%, 5.25% and 6%, respectively. Post lunch session India markets continued to surged higher.

Last three weeks the only buzz in the market is the scams that are going bust now days… As I have mentioned that the list of the scams in India are growing. Heard in the markets that the DMK pulling out the support to Congress. Markets remained very volatile through the week. Fears of DMK removing the support triggered some sell off in the market.

Moil got listed on the brousers with a premium of 55-60%. Before the listing the premium in the grey market have drastically fallen down from nearly Rs300-350 to just Rs200-250. On the listing day Moil opened at 590 and the sell off came and closed at

Nifty made a low of 5795 and high of 5956 to close at 5948 up by 57 points on the last day of the trading session. Nifty to breakout out above its wave theory should close above 6070 levels. Nifty will find resistance at 5966-5987-6033 levels. If Nifty turns down again and closes below the 5890 levels then we could see 5800-5700 levels again in the near future. Below 5700 there could be carnage in the market.

Nifty once again took support at its 38.2% retracement levels and the trend changed. On the last day of the trading week Nifty closed above its 23.6% retracement levels. In last one month Nifty for the 1^st time closed above its 20DMA. This could trigger that the Nifty is all set to move up once again. The RSI have given positive move and the MACD is all set to give positive divergence.

Midcap stocks after the sharp fall in the prices have started picking up. Stocks which have not been named in connection with any price rigging matter have been on the buyer’s radar. Market should continue to rally till the time there is no bad news in the market.

Sell Dr Reddy below 1787 SL 1798 tgt 1776-1753.

Sell HUL price tgt 289-284.

Buy Icici with a SL of 1101.

Important US Economic data to watch from 13/12/2010 to 17/12/2010

TIME (ET) REPORT PERIOD

MONDAY, DEC. 13 None scheduled
Tuesday, DEC. 14
7:30 am NFIB index Nov.
8:30 am Producer price index Nov.
8:30 am Core PPI Nov.
8:30 am Retail sales Nov.
8:30 am Retail sales ex-autos Nov.
10:00 am Business inventories Oct.
2:15 pm FOMC Meeting announcement
Wednesday, Dec. 15
8:30 am Consumer price index Nov.
8:30 am Core CPI Nov.
8:30 am Empire manufacturing index Dec.
9:00 am Treasury International Capital
9:15 am Industrial production Nov.
10:00 am Housing market index Dec.
10:30 am EIA Petroleum Status Report
Thursday, Dec. 16
8:30 am Jobless claims Dec.11
8:30 am Housing starts Nov.
8:30 am Building Permits Nov.
8:30 am Current account 3Q
10:00 am Philadelphia Fed Survey Dec.
10:30 am EIA Natural Gas Report
FRIDAY, Dec. 17
10:00 am Leading indicators Nov.

The List is growing…..

The last weeks Article named “India the den for the Scamsters” really fits well for the Indian economy. This week the list have been update with few more name like Sanjay Dangi, KP… And the list is just growing..

Q2 farm sector growth at 4.4% V/s 0.90% (YOY) Q2 manufacturing growth 9.80 % V/s 8.4 %, Construction growth 8.8% V/s 8.30%, Mining sector growth 8% V/s 10.10%, Service sector growth at 9.80% GDP growth 8.8% V/s 8.7%..

The government today approved additional capital infusion of Rs 6,000Cr in 10 public sector banks with an objective to raise its holding to a minimum 58 per cent in all state-run banks. The government has already announced infusion of Rs 15,000Cr in the Budget to ensure that capital adequacy ratio of all the public sector banks increase to 7 per cent. The increase will give banks additional headroom to raise funds from capital markets without depending on the government.

After the approval of the Euro85bn emergency aid package for Ireland worries are still there for the much bigger problem in Portugal and Spain. The Euro dipped below $1.30 for the first time since mid Sep. The risk of the Europe is that Spain’s Economy is twice as big as that of Greece, Ireland & Portugal combined. So the Euro regions 750bn euro bailout fund may not be big enough if the country resorts to aid.

US jobless claims was up at 436000 an increase by 26000 since last week, indicating the labour markets will take time to improve.

Fresh short positions and partial profit taking were seen in Shipping Corporation of India, where the open interest surged 44% on speculation that the shares from the follow-on public offering will list at a price lower than current market price, a derivatives dealer said. The same thing happened with PGIL also. Before the FPO closed the stock was trading at 101-103 levels but till the new shares listing the price collapsed to 97 levels.

Last times article says “5700 is supposed to be a very crucial level for the Nifty. It is that point from where the Nifty had fallen down on 21^st Jan 08. The open and low on that day was 5700 and 4977 and the close was 5208.80. Nifty for the 2^nd consecutive close below the 5700 may be really bad for the Indian equity markets. Nifty may continue to fall it 5490 levels. That’s nearly its 50% retracement levels that can be seen in the chart.”

But the Nifty took good support at the same and bounced back. It was unexpected that the Nifty will bounce back till 6000 levels. But the 5700 level acted as a pillar to the Nifty. The dark clouds are still not out of the Indian markets. Everyday we are hearing new scams in the Indian equity markets. Recently Sanjay Dangi and some promoters of the companies are barred to trade in the markets.

As mentioned the Nifty is nearing its oversold zone. And closed below 5700 will take the Nifty to 5490 levels, but Nifty took good support at 5700 levels and bounced back sharply to make a Intraweek high of 6029 to face resistance at its 20DMA. Nifty on Monday took good support at its 50DMA and the Long term trendline. Nifty took good support at its 38.2% retracement levels which the writer had mentioned in his last article.

But the recovery seems to be very fast.

Markets have bounced back sharply. Nifty will face resistance at 6030. Close above the same will take the Nifty to 6056- 6079-6150 levels. We are still not sure that the markets are strong or this is just a start of the new Wave pattern in the downside. Nifty will find support at 5900-5860. Close below 5800 will once again take the Nifty to 5700 levels.

But in the weekly chart of Nifty after its 3 weeks continue downfall Nifty had finally pulled up. 3 Black crow patterns have been made in the Nifty weekly chart and after that it is normally seen that the next trading session is positive. And this week Nifty gained and closed above at 5992. But the in the weekly char the nifty is still facing resistance at it trendline shown in the chart. But still traders can trade with the levels provided.

Last weeks call

Sell Bajaj Auto below 1611 SL of 1616 tgt 1600-1587. Tgt achieved made a low of 1548.

Buy Boi above 429 SL 418 tgt 440-446-452. Tgt achieved made a high of 499.

Buy BEL above 1725 SL 1715 tgt 1747-1755. Tgt achieved made a high of 1759.

Buy Drreddy above 1794 SL 1785. Tgt achieved made a high of 1835.

Sell Hdfc bank below 2290 SL 2300 tgt 2276-2254. Tgt achieved made a low of 2258.

This week Calls.

Sell Acc below 980 SL 987 Tgt 970-965-950

Sell AshokLeyland below 71.50 SL 73.

Buy Bajaj Auto close above 1608 SL 1600 tgt 1630-1649.

Buy Ril close above 1010. SL 1000 tgt 1028-1034-1050

Sell Sbi below 3060 Sl 3070. tgt 3050-3039-3024

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