The List is growing…..

The last weeks Article named “India the den for the Scamsters” really fits well for the Indian economy. This week the list have been update with few more name like Sanjay Dangi, KP… And the list is just growing..

Q2 farm sector growth at 4.4% V/s 0.90% (YOY) Q2 manufacturing growth 9.80 % V/s 8.4 %, Construction growth 8.8% V/s 8.30%, Mining sector growth 8% V/s 10.10%, Service sector growth at 9.80% GDP growth 8.8% V/s 8.7%..

The government today approved additional capital infusion of Rs 6,000Cr in 10 public sector banks with an objective to raise its holding to a minimum 58 per cent in all state-run banks. The government has already announced infusion of Rs 15,000Cr in the Budget to ensure that capital adequacy ratio of all the public sector banks increase to 7 per cent. The increase will give banks additional headroom to raise funds from capital markets without depending on the government.

After the approval of the Euro85bn emergency aid package for Ireland worries are still there for the much bigger problem in Portugal and Spain. The Euro dipped below $1.30 for the first time since mid Sep. The risk of the Europe is that Spain’s Economy is twice as big as that of Greece, Ireland & Portugal combined. So the Euro regions 750bn euro bailout fund may not be big enough if the country resorts to aid.

US jobless claims was up at 436000 an increase by 26000 since last week, indicating the labour markets will take time to improve.

Fresh short positions and partial profit taking were seen in Shipping Corporation of India, where the open interest surged 44% on speculation that the shares from the follow-on public offering will list at a price lower than current market price, a derivatives dealer said. The same thing happened with PGIL also. Before the FPO closed the stock was trading at 101-103 levels but till the new shares listing the price collapsed to 97 levels.

Last times article says “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.”

But the Nifty took good support at the same and bounced back. It was unexpected that the Nifty will bounce back till 6000 levels. But the 5700 level acted as a pillar to the Nifty. The dark clouds are still not out of the Indian markets. Everyday we are hearing new scams in the Indian equity markets. Recently Sanjay Dangi and some promoters of the companies are barred to trade in the markets.

As mentioned the Nifty is nearing its oversold zone. And closed below 5700 will take the Nifty to 5490 levels, but Nifty took good support at 5700 levels and bounced back sharply to make a Intraweek high of 6029 to face resistance at its 20DMA. Nifty on Monday took good support at its 50DMA and the Long term trendline. Nifty took good support at its 38.2% retracement levels which the writer had mentioned in his last article.

But the recovery seems to be very fast.

Markets have bounced back sharply. Nifty will face resistance at 6030. Close above the same will take the Nifty to 6056- 6079-6150 levels. We are still not sure that the markets are strong or this is just a start of the new Wave pattern in the downside. Nifty will find support at 5900-5860. Close below 5800 will once again take the Nifty to 5700 levels.

But in the weekly chart of Nifty after its 3 weeks continue downfall Nifty had finally pulled up. 3 Black crow patterns have been made in the Nifty weekly chart and after that it is normally seen that the next trading session is positive. And this week Nifty gained and closed above at 5992. But the in the weekly char the nifty is still facing resistance at it trendline shown in the chart. But still traders can trade with the levels provided.

Last weeks call

Sell Bajaj Auto below 1611 SL of 1616 tgt 1600-1587. Tgt achieved made a low of 1548.

Buy Boi above 429 SL 418 tgt 440-446-452. Tgt achieved made a high of 499.

Buy BEL above 1725 SL 1715 tgt 1747-1755. Tgt achieved made a high of 1759.

Buy Drreddy above 1794 SL 1785. Tgt achieved made a high of 1835.

Sell Hdfc bank below 2290 SL 2300 tgt 2276-2254. Tgt achieved made a low of 2258.

This week Calls.

Sell Acc below 980 SL 987 Tgt 970-965-950

Sell AshokLeyland below 71.50 SL 73.

Buy Bajaj Auto close above 1608 SL 1600 tgt 1630-1649.

Buy Ril close above 1010. SL 1000 tgt 1028-1034-1050

Sell Sbi below 3060 Sl 3070. tgt 3050-3039-3024