Sep 25: All which goes up comes down

Indian Currency witnessed one of its sharpest and fastest depreciation in the recent times.

Rupee is trading near 50. Commodities are on the way finding support. All the commodities corrected in the range of 8-2% on the last day of the trading session. Silver tanked nearly 8% while Gold corrected 2%. This carnage is all because the appreciation in the Dollar. Dollar has been rising since quite a long against almost all the global currencies.

Indian equities market corrected more then 4% in a week. Last weeks rally was a false rally. Almost all the large cap stocks lost nearly 5 of their market capitalization. Nifty and Sensex lost 4.3% & 4.6% respectively. Small cap and Midcap Index shrinked by 2.5% in a week. Capital goods Index lost the most, closed below by 7.5%. Metal Index and the Oil & Gas Index too were hit severely, which tanked down nearly 6% each. Bankex and IT index closed down 3.7 & 2.5% each.

Amongst the Large cap stocks Lnt, Tata motor, Ster Ind lost more than 9%. Sesagoa, Rel Infra & Ril Ind lost in the range of 6% -7%. Tata Steel, Dlf closed down 5%. While JP Ass lost just 3%. In the Mid cap and Small Cap stocks like Pantaloon lost 12.5%, Jain Irrigation 11%, Godrej Ind 9%, Orchid Chem 8%, Crompton Greaves & Alok Ind lost 7%.

Gainers list are very less as compared to the losers. Reliance Power & Grasim gained 2%, ACC 3%. In the midcap and the small cap stocks Alfa Laval gained 12%, Marathon 77% in a single week, Zandu reality 22%, Sunteck reality 13%, KGN Ind 13% and Inox gained 15%.

In the last article I had mentioned that , if the Nifty falls below then it may correct to 4910 levels and that will be a Lower Top and Lower Bottom formation. We can clearly see that the Nifty made a Double Top at 5160 levels and corrected. Nifty closed down at 4868 down by 4% in a week. On Thursday Nifty closed down below its two parallel after taking support at its 38.2% retracement levels. Nifty on the last day of the trading week made a Doji pattern at the bottom but that don’t suggest that the correction is over. Since the last few weeks I have been informing the readers of the Informed News paper that the Markets are still looking bad and we could continue with the correction. On Thursday Nifty closed below its 20DMA. Nifty will find support at 4800 levels.

If the Nifty closes below 4800 levels, then we may see more carnage.

Calls for the week

Sell Bhel below 1680 SL 1695. Made a low of 1573

Sell Container Corp SL 895. Made a low of 873.

Buy Corporation bank above 456. Could not trigger the buy price.

Sell Hero corp below 2193. SL 2205. Made a low of 2021.

Buy Hdil above 111.50 SL 110. Made a high of 114.80

Buy Maruti above 1117 SL 1106. Made a high of 1162.