Sat: 07th Nov. Indian markets feel the pinch

After the failure of the Euro talks. Global markets tanked. Indian followed the suite. Indian markets corrected nearly 1.25%.

Most of the Global Markets corrected almost 5% on Tuesday after the Euro Zone agreement to rescue Greece and keep the sovereign Debt crisis from spreading was upended following the decision of the Greek Prime minister to go for a public ballot on the bailout package. Indian markets also lost over 1% on Tuesday. MF Global filled for bankruptcy this week and there were reports that Credit Suisse shedding another 3% of its workforce.

Technically Nifty seems to have found a big resistance at 5335 levels. Where the Fibonacci Retracement levels comes. If the take the high of 5944 and low of 4720, the 50% retracement levels comes to 5335 levels (marked in the chart).

Nifty and Sensex closed down 1.5%. Tata motor closed down 9%, Sterlite 7%, Icici Bank & Sail 5%, Mnm 6%. Tata Steel 3.5%, Coal India and DrReddy closed down 3% & 4%. The gainers list in the frontline stocks are little less. Hul gained 8%, Rpower & Rcom both climbed 4% each. Sesagoa & Bhel 2% each. SBI 3%. In the Essar Port gained 26%, All Bank 16%, Havells 15%, Pvp venture 35%, Kpr Mill 24%, Pvr cinemas 22%.

Once again Nifty is nearing its over bought position. Indian markets are now a days seems to follow the global trend. Nifty will find resistance at 5400 levels. As everyone knows that the nifty faces strong resistance at 5400 levels, so there is nothing much to say about the same. But we need to think about the sustainability above 5400 levels. In the short run the markets have surely come off but I still have a doubt about the market as the way I had in the past. As I have talked about the same in the previous articles also about the inflation, rising fuel price, falling real estate prices, government issues etc, etc. So keeping all those in mind I still don’t have faith in the India markets. It is still not the right time to invest in the markets.

US unemployment data at 9% as compared to 9%. Seems to be a good news for the International market. But there has been steep drop in Industrial order from 1.5% to 4.3%.

This weeks call

Buy BOI above 346. SL 341.

Sell Bpcl below 622 SL 625 tgt 614.

Sell Corp Bank SL 407.