This article was written on 27^th Jan and the levels mentioned are based on the 27^thJan levels.

Nifty continued its downward movement. This week as the Nifty ended its Jan F&O series, Nifty spot fell below the long term support levels of 5700 once again. Nifty and Sensex lost more than 8% in the Jan series. Most of the frontline stocks lost heavily as the Nifty slide continued. Heavyweights like Bajaj Auto lost 14%. HUL which is normally considered the stock with rock solid performance lost nearly 13%. Jsw steel and Sail shred 18% & 12% respectively. In the Reality space Unitech and DLF lost 17%. Ongc tanked more than 14% in the Jan series alone. Hdfc and Icici bank also lost in the range of 10-12%. Sterlite lost 10%.

Finally as expected FM have mentioned that the government will not be questioning the Black Money lying in the Swiss Banks. The Black money can be brought back to India with a tax payment here. I really could not calculate the benefit achieved by doing this. It seems that Indian politicians are aware of the people and the amount kept in the Swiss Banks but they do not want to disclose. This might reveal most of the highend Netas name too….

Banks which gained the most in the last week, slipped down this week on the as the Reserve Bank of India (RBI) on Tuesday increased the key policy rates by 25 basis points (bps) each, as the central bank steps up its efforts to tackle a stubbornly high inflation at the cost of some moderation in economic growth.

The repurchase rate (repo rate) has been hiked by 25 bps to 6.50%, while the reverse repo rate has also been increased by 25 bps to 5.50%. The central bank also extended the 1% leeway in the SLR up to April 8. CRR has been left unchanged at 6%.

The inflation target for FY11 has been increased to 7% from 5.5% earlier while the GDP forecast for the current fiscal year has been kept steady at 8.5% with an upward bias.

In the last weeks article I had mentioned that the Nifty will face resistance at 5725 and levels and fall below the 5662-5639 levels may take it to 5580 levels. Nifty on the close of the Thursday’s close fell down to make a low of 5593.70 but close marginally higher above 5600 levels.

Nifty have slipped below its 38.2% retracement levels and close at 5607 after making a low of 27^th Jan 2011. Nifty closed below its 200DMA. The fall will continue till 5540 levels. Close below the same will take the nifty to 5488-5400 levels. Nifty is not at all in the mood to trend upwards. Rolls have been way below the average. Volumes have been vanishing from the markets. Nifty in the short term may trigger 5400 levels.

Nifty have been in the sell mode since when it closed below the 5700 levels. These have been mentioned in my last few articles also. The above mentioned levels are just the small support levels where we might see some pull back coming and then sell off at the end. These levels are for the traders who want to take some short term positions.

Last Weeks Call (prices as of 27^th Jan 2011)

Short United Phos below 151 SL 153 tgt 146-142. Target still not achieved.

Buy Union Bank above 328 SL 323 tgt 333-339-342. 2nd Tgt reached. Made a high of 340.

Short Torrent Power below 235 SL 238. Buy if closes above 241.50. Made a low of 230.50.

Sell Tata Motor Close below 1182 SL 1192 tgt 1172-1162-1141. 2nd Tgt reached. Made a high of 1160.

Buy Tata Motor only above 1210. Did not trigger the levels.

Buy SBI with SL of 2590 tgt 2610-2634. Made a high of 2737.

Buy SesaGoa with SL of 330. Made a high of 344.

Buy Relcom above 138 small resistance at 139. with SL of 134. Did not trigger the levels.

Sell PNB close below 1125. SL 1133. Made a low of 1102.

Buy Icici bank above 1069 SL 1063. Made a high of 1092.

This Weeks Call

Sell Adani Ent close below 612 SL 618 tgt 600-590-584.

Sell Ashok Leyland close below 58. SL 60 tgt 55-53.

Sell Asian Paint below 2600 tgt 2575-2547.-2520.

Sell Hdfc Bank below 2030. SL 2049.