Sunday, March 27, 2011

Who care’s whats happening with Libya……

No one cares about the International markets when our markets are doing good.

Everyone’s forgotten about Gadaffi, after the Japan sinked by the Tsunami. Researchers feel that there is a lot of buying opportunity in Japan. Japan will soon regain its strength. But what has triggered buying in Indian markets. Crude which was a major concern in the last 2 weeks, commodities is still at their peak. Inflation is almost there at its highest levels. Still no outcome for the pranksters which are held in the scams. Then why have the Indian markets turned positive suddenly.

It might be just a technical reason. Indian markets in the last few months have been in the downtrend. Since the start of this year indices gave negative returns of almost 15-18%. Nifty from the high of 6200 tanked down to make a low of almost 5200 levels. Sensex made a low of 17295 from the high of 20650 odd levels. At 5200 levels Nifty was trading in the oversold zone. Currently the Nifty is at 5650 and Sensex at 18800.

Indices have almost bounce 10% from their lows but the stocks are still way below their peaks. Midcap stocks are struggling hard to reach up to their 50% crashed mark. Select Largecap stocks have helped markets to regain strength.

Real Estate stocks have been performing very badly on the brousers. The growing inventory has proved bad for the stocks. House registration is down almost 35-40%. But the prices are still to collapsed. Coming next financial year prices should cool off.

Portugal might have no alternative to accepting a financial rescue from the EU and the International Monetary Fund after the parliament rejected severe austerity measures.

Technically Nifty bounced back from it’s over sold zone and made a recent high of 5667. Nifty is just few points below its 200DMA. Nifty on Thursday has given breakout. Nifty close above the trendline. On Friday Nifty and Sensex both opened with a gap. 5600 has been a very crucial levels to cross over. In the last two occasions also Nifty did try to close above the same but could not do so. Finally on Friday markets opened with a gap and close above the 5600 levels. Nifty will face resistance at 5690 levels. On Friday, Nifty closed above its 50% retracement levels also. Close above 5690 will take the Nifty to 5726-5747 levels. Nifty will support levels at 5624-5590.

This writer had advice to buy Silver on every levels right from the $16 levels. And now it’s at $36. I would still advice my readers to buy Silver with a long term prospective. None of the commodities will give better returns as this one…… Buy buy buy…..

This weeks call

Buy Allahabad bank above 221 SL 219.

Buy Areva with a SL of 242.

Buy Axisbank close above 1377 SL 1370.

Buy BOB close above 933.

Buy Brfl close above 267.

Buy Educomp with a SL 417.

Buy Fintech close above 874.

Buy Sbi above 2728. SL 2717.

No comments: