==>> Correction on the wayyyyyyy

It’s the same old story that has been repeated. The pain is given again and again, but this time, it can be proved to be fatal. This is the 3rd time the Nifty has been topped up. No doubt the Nifty have made its 2009 high at 5182.55, but the sword till hangs on the heads of the Bulls & the Bears.

Markets for the week ended on the flattish note. Last week gains have been stalled in the current week. Sensex & Nifty closed flat. Small Cap Index was the only index that gained in the week, rest closed marginally down. Capital goods Index was the major gainers for the week closing higher by 3.6%. Bhel contribute the most closing higher by 7%, LNT followed the suite rising 4.2% and Suzlon 4.6%. Telecom stocks also pretty well. Idea surged 9%, Bharti 6.7% and Tata 7.5%. The Metal Index lost 3%, while Sterlite lost 5.5%, Tata Steel & Nalco lost 5%. In the Index Cipla lost 5%, Cairn & SBI lost 2.8%. Midcap and Smallcap stocks gained. Kernex gained 51% in the week. Foursoft & FCS gained 35%, KRBL surged 30%. Time Technoplast, Rain commodities & Manaksia gained in the range of 20-25%. Godrej Properties IPO has come up with the IPO, but Godrej Ind lost nearly 16% in the week. Skumar, GVK Power & Renuka lost 8%.

Markets on Friday closed lower on back of less that expected IIP data. Markets Expected IIP data to be nearly12% mom, but the actual came at 10.3% v/s 9.6% mom. Markets dipped as soon as the IIP data was announced were announced. Cox & Kings which got listed gained nearly 30% on the day of the listing.

Technically the Nifty chart has made a breakout pattern in the downward side. In the chart we can clearly see that the RSI was trading in the triangular pattern. And have given a breakout in the downside. The same was mentioned on my blog www.technicalsvishaldangaich.blogspot.com.

On the first day of the week, Nifty took support of the 20DMA and bounced back on the very next day to close at 5148 levels. Next 3 days Nifty closed with marginal loss and gain. In the expectation of good IIP data and recovery in the global markets on Friday, Indian markets too opened in green. Sensex opened higher and pre lunch period was up high nearly 130 points, but tanked immediately after the IIP data was released. Sensex dipped nearly 100 points down. Nifty made an all time high of 2009 at 5182.55 levels, failing to cross over the 5185 levels as mentioned earlier in my article. Nifty for a quite long time was trading in the parallel trendline. But on the last day closed below the same. RSI which was also trading in the triangular pattern has given a breakout pattern in the downside. Monday trading pattern will give the confirmation for the further movement.

Update on last week’s call
Short Nifty below 5110 tgt 5040-5015- made a low of 5051
Short Tata Steel below 570 made a low of 536
Buy Rcom above 181.50 SL 176. Made a high of 190
In small Cap. Buy Aksh optifiber cmp 21.70. Made a high of 23.75

This week’s call
Short BOB below 496 with SL of 505.
Short BPCL below 626 tgt price 596 SL 634
Sell ICICI bank above 887 or short below 844.