India the den for the Scamsters

This writer had been constantly updating the reader of the Informed Investor that Indian markets are in a Bear trap and the Nifty could test 5700 levels. So here are we. Nifty close below 5700 mark.

Last weeks article (In the chart we can clearly see that the Nifty closed below it trendline which was drawn since quite a long time and its 23.6% retracement levels. Nifty below 5800 will come down to 5705 with immediate support. On the upside Nifty will continue to face resistance at resistance at 6020. Last week the MACD had given the sell signal with RSI trending downwards. Sensex immediate support will be at 19445. This week Nifty closed below its 50DMA.)

Last weeks call

Sell Adani below 736 SL of 744, tgt 706. Tgt achieved made a low of 698.

Sell Bob below 936 tgt 923 – 911 SL 945. Tgt achieved made a low of 836.

Sell Biocon below 392 SL 397 tgt 380. Tgt achieved made a low of 360.

Sell Hdfc bank below 2292 tgt 2255 SL 2314. Made a low of 2276.

Sell Lic housing SL of 1308 tgt 1263. Tgt achieved made a low of 931.

Sell Hindalco below 210 tgt 195 SL 214. Tgt achieved made a low of 194.

Sell Icici bank below 1140. tgt 1100. Tgt achieved made a low of 1091.

Sell Mnm Tgt 735. SL of 759. Tgt achieved made a low of 734.

Sell Ril below 980 Tgt 960. Tgt achieved made a low of 958.

It seems that in the near India will also need Austerity measures. The way the Indian BABU’s are laundering the money it seems that India will surely be on SALE after few years. India has been hit with series of Scam in the last few months. From CWG to LIC housing scam. Adarsh case or land scam in AP. Even the Panwallas in Ahmedabad are involved in scam. Lic loan scam is nearly Rs.1600Cr and name nearly 21 real estate companies involvement.

The amount which the Indian government are raising by selling stake in the govt holding companies are just going in the pockets of the Big B’s, I mean to Big Babu’s. The way the govt is raising money and the FII pouring money in our Economy is amazingly high. But the trust on which the money is coming may be losing out. LIC housing is one of the script high is in high demand in some of the FII’s. But the mutli-dollar scam could really effect. Lic which is one of the very sound companies in India seems to have been in questioning by the CBI.

It seems that 26/11 as a date is not good for the Indians or specially the Mumbaikar’s. Few Years back the attack on Mumbai and the crash in the Indian markets seems to have affected whole of India. On the last day of the week Nifty tanked below 5700 levels. North Korean fired dozens of artillery at one of the South Korean island. In return South Korean too fired back. Global markets tanked on the news of the war between the two countries. Sensex tanked nearly 600 points on that day.

Rupee slipped down to 45.85/$ to the lowest since mid Sep. FII for the weak remained Net seller to the tune of nearly Rs3KCr. On the other hand DII bought stocks worth Rs.2KCr.

As mentioned in my earlier article also the Indian markets are in the Bearish trend and Nifty will fall till 5800 mark and close below the same will take the Nifty to 5700 levels. Yes Here we are… Nifty on the last day of the week made an Intraday low of 5690 but recovered sharply to close at 5752 down by 47 points, Sensex closed at 19136 down 181 points.

This week Korean war, Loan Scam everything affected the Indian markets. Due to the effect Sensex & Nifty slipped 2.5% in a week. Smallcap and the Midcap Index tanked 5-7%. Real Estate was the Major index which closed down 14%. Metals cooled off with 6.5% loss. Cap goods tanked 5.5%. Oil and Gas were down by 4%. After the banking personal names taken in the Bribery case, the Bank Index cooled off 3.4%.

Lic Housing after the Loan Scam tanked 28% in the week. Some of the real estate names which were in focus due to the Loan scam and the Money matters scam faced the heat and dropped down heavily on their knees. Hcc & Orbit corp closed down 29%. Hdil 22%, Ibreal 21%, Jp ass 12.5%, DLF 6%. IIFL which had taken out a buy report on the Money matter just few days before the scam came in notice saw a sharp fall in its market cap and the stock price collapsed nearly 25%. Some of the other stocks which crashed during the weeks tradin session are Suzlon13%, Sesagoa 9%, Sterlite 8.5%, Rcap 8%, Sail 6.8%, Lnt 5.5%, Sbi 4.5%, Renuka 16%. Coreproject crashed 40% in the intraday trade but recovered almost full in the post lunch session.

As mentioned in my articles that the Nifty had taken support at the 23.6% retracement levels and the trendline. Fall below the same will take the Nifty to 5700 levels. Nifty made a low nearly at 38.20% retracement levels. Close below the same and the Long term trendline will take the nifty to its new low at 50% retracement level that comes nearly at 5490 levels. Nifty closed below its 100DMA. And the RSI is nearing its oversold zone.

5700 is supposed to be a very crucial level for the Nifty. It is that point from where the Nifty had fallen down on 21^st Jan 08. The open and low on that day was 5700 and 4977 and the close was 5208.80. Nifty for the 2^nd consecutive close below the 5700 may be really bad for the Indian equity markets. Nifty may continue to fall it 5490 levels. That’s nearly its 50% retracement levels that can be seen in the chart.

This Weeks call

Sell Bajaj Auto below 1611 SL of 1616 tgt 1600-1587.

Buy Boi above 429 SL 418 tgt 440-446-452.

Buy BEL above 1725 SL 1715 tgt 1747-1755.

Buy Drreddy above 1794 SL 1785.

Sell Hdfc bank below 2290 SL 2300 tgt 2276-2254.