Coal Coal Coal.. its everywhere.

Coal India is on its way to make debut on the Indian markets. On the listing day the market cap of the script will be nearly about Rs1.50L Cr, ahead of the Diwali Festive season which is due in the next week. Sebi has also increased the IPO limit for the retail investors to Rs.2L up from Rs.1Lac. This will trigger more inflows in the Equity market.

FII for the first time turned out to be sellers in last 1-1.5 month. Profits booking were seen in the Indian markets. Sensex breached the 20000 levels and Nifty 6000 levels. But closed marginally higher above the said levels.

If we look at the chart the Nifty is still showing weakness and on Thursday Nifty closed below its Head and Shoulder pattern and slipped below the 6000 levels. But the said support level of 5980-5930 levels seems to be very strong and the nifty on Friday bounced back from the said levels. Sensex made a low of 19768 and closed at 20032 up by 91 points on the last day of the week.

According to the Fibonacci Theory, if we take the low of nifty from 4786 that was made in the month of May after a long sideway movement and the High of 6284 levels. 6284 was the levels; I had recommended that the Indian markets will surely see some correction. The 23.60% retracement levels come nearly 5930 levels. And today Nifty had made a low of 5937. On Thursday Nifty breakdown its Head and Shoulder pattern and closed below at 5987 after making a low of 5968. Nifty if closes below the 23.60% retracement levels then we might see some more correction coming on the way.

In the weekly chart Nifty is still trading in its overbought zone, but in the daily charts Nifty is well near the comfort zone. But still it’s in the bear trap. And the revival is still not in sight. Nifty will resistance at 6037-6057 levels. Close above 6057 will take the nifty to 6150 levels, but that still seems to be out of reach as of now.

This weeks Call:

Buy Adani Ent above 712 SL 704.

Sell Biocon below 405 tgt 391-386 SL 411.

Sell Cromptom below 317 tgt 305 SL 325.

Sell Hdil below 244 tgt 236-232.

Buy Icici bank above 1169 SL 1163.

Sell Rilinfra below 1032 SL 1047 tgt 1007.