Sun 13th Nov: Is the day really Auspicious???

Astrologers betting big on this date. 11.11.11 is a date which is seen once in a century. Bets from the release of movies to Indian Actress Aishwarya Rai Bachan’s delivery have been played on this date. But what about the Indian equity investors. How did they feel? How many of them were lucky on the brousers.

But this week was surely bad for most of the Investors as the Indian rupee falling past 50 per dollar, making it more difficult for the country like Indian which have huge and huge of imports. Rupee hit a low of Rs.50.35 on Friday and the carnage can continue past Rs.51 if RBI does not intervene in the Forex Market and the Eurozone issues does not resolve. Oil refineries companies feel more heat, as their recovery on Oil is not improving and on top of that Rupee depreciating. Banking stocks have been trashed after the Moody’s downgrade. Long commodity traders have surely had a good time when Gold neared its all time high of Rs.29000.

Inflation numbers not ready to come down even after increasing in the lending rates. To add to the worst IIP growth for September Month came at 1.9% vs 4.1% in Aug.

Yields on two year and ten year Italian bonds rose above 7%.With the debt burden of about E1.9 trillion, its seems, Italy is considered too difficult to bail out. In case of default, Europe will surely come to a stop and slip into recession. World is in a greater danger than it was in 2000 or 2008. The debt of US and European countries are ever growing. Printing more and more money is not going to solve the problem. It will add to the issue of Inflation which will sky rocket and would get worse and worse.

Smaller trading week seems to have kept the traders out of the market. Last week also markets corrected 1.5% and the carnage continued this week too. Nifty and Sensex lost another 2.5% this week. Few days back most of the operators or traders had turned bullish as Nifty neared 5400 levels. But the bears again got control of the markets. There was no positive trigger for the markets to surge higher. Small cap and Midcap indices closed down more than 3%.

Most of the Indices closed in red. Bank Nifty tumbled down 6%, Power sector corrected 2.5%, Automobile 1%, Oil & Gas 1.4%, Metals 5%. HUL continued its upward movement and closed higher by 5%, TCS, Wipro& Hero Motor 3%, Cairn India 2.5%.

Global markets corrected heavily on Wednesday on back of worsening Euro crisis. Indian markets continued to face the threat from rising rupee, rising Inflation and bad IIP numbers. Indian markets corrected another 2.5%. Nifty closed at 5169 and Sensex at 17193. As mentioned in the earlier article that the Nifty will face resistance at 5350 – 5400 levels. Nifty face resistance at its 61.8% retracement levels. Nifty corrected and broke the 50% level also and finally took support at 38.2% level. Nifty made a low of 5142 but closed a little higher at 5169.

Nifty below 5112 levels can come down to 5050 levels. On the higher side Nifty will face resistance at 5250 levels.

Last weeks call
Buy BOI above 346. SL 341. Did not trigger the price

Sell Bpcl below 622 SL 625 tgt 614. Made a low of 545.

Sell Corp Bank SL 407. Made a low of 403