Once again 4800 in the Nifty seems to have given a good support. Nifty of the past 3 days have been trading near the 400 mark. On 28 the Jan Nifty closed in positive zone, breaking the downtrend, with marginal gains. In the Chart we can clearly see that the DOJI pattern has been made on the first day. Then again at the lower levels, a small HAMMER like pattern is been made on the 2 consecutive days. Today Nifty closed at 4915 levels. Nifty will continue to face resistance at 4940 levels. Up move above the same will be decided, when the Nifty close above the same.

As mentioned in my last article that the markets will bounce back in this week, as it was trading below the lower Bollinger band and the RSI was also below the oversold zone.

BUY Apollo Tyre above 58

Short Ambuja Cement below 100.50

BUY Bharat FOrge above 278

Sell Cairn with tgt of 254

Short REl Cap below

Markets closed Negative with record volumes on expiry date

Last of the expiry date Markets were amused with the volumes. Volumes in the Markets were at its peak making a record in the history of the Indian markets. Total Volumes crossed Rs1.92L Crs. F&O contributed Rs.1.66L Crs.

In just 3 trading days in the week and the 1 more left, markets witnessed severe volatility. Nifty lost nearly 3.5% wow basis. As mentioned in my last article that we might see some more correction and close below 5000 levels will take the Nifty to the next level of 4944-4850 levels. Nifty made a low of 4825 and closed at 4868. Selling was seen across the board as all the sectoral indices ended lower. The top losers were the BSE Realty, Metal, Auto and Bankex indices. Bear waited for this for a long time and finally its here.

Global Markets too corrected for most in the week. US markets corrected on the week housing sale numbers and rising unemployment numbers. Obama has indicated that he will create more jobs to control the unemployment rate. Obama has also indicated US companies to restrict exposure to the Chinese markets. Last week the Chinese Government increased the Interest rate. Indian Economy is too showing strong GDP & IIP growth. Inflation still remains the main cause for the Indian Government. Still the there is no increase in the interest rate. According to me there should be increase in Interest rate and there can be steps taken ahead for the removal of stimulus package. But I am not sure when that will come, but surely it will be done in near future.

A fundamental of the Country and the Company is very much important for any stock market to run successfully. Many seems to be turning too Bearish on the Indian markets. Fundamentals of any companies are the first and the foremost thing that has to be seen, but technicals give the proper buying and the Selling price of the particular script. The reason behind writing about this is, Indian markets are not fundamentally week now. GDP & the IIP growth are accelerating. Indian markets have bounced back sharply in the last 1 year. I had talked about PE at which the Indian markets were trading. Few articles I had clearly mentioned that the Nifty and the Sensex is trading at a PE of almost 24, which was as similar to the PE at the peak of the markets. So in the short time the Markets have triggered the Sell buttons, just because the Indian stock markets seems to be slightly over priced.

Nifty for the first time after the Month of November closed below the lower band of the Bollinger Bands. Whenever this is down, we can expect some pull back rally. Nifty on 28th Jan 2010 closed marginally higher at 4868 levels after making a high of 4929. In the past also it has been seen that the 4800 levels acts as a good resistance and support. Nifty may find the same support this time also. Nifty close below the same will take the Nifty to the next level to 4600 levels. Nifty closed the 100DMA. Nifty may bounce back to face resistance at 4954-5000 levels. RSI has fallen down to the oversold zone. Nifty will find support at the trendline. A clear Head and Shoulder pattern had been formed in the RSI pattern in the last week that too triggered the sell off. Markets might bounce back in the coming week, but no major position is advice.

On the last day of the week Markets opened by strong even after the carnage seen a day before. But slipped in the red zone in the post lunch session. Wewap selling in the end too lead some volatility in the market. Huge short were rolls in the current month with record volumes in the history of Indian markets.

In just 2 days of the week FII remained Net seller to the tune of Rs3200 Crs. But DII were buyers of Rs.2190Crs.

Last week calls Update
Short ICICI Bank below 834 SL 840. Low of 780 was made
Short PNB below 900 SL 915. Low of 850 was made
BUY Tech mahindra above 1137 SL 1125. Could not trigger the buy price of 1137.

This week’s call
Buy DLF above 3 with SL of 317.
BUY HDFC with SL of 2306.
Short HUL Below 251. with Sl of 255.

Blood Bath on D Street

Blood Bath continued on the D-Street, with Markets sinking deep in Red. Indian markets closed down nearly 3.5% with the highest ever turnover in the Indian Capital markets. With Expiry date nearing, volumes in the F&O surged drastically. Volumes crossed Rs1.58L Crs only in F&O, and NSE & BSE cumulative cash volumes were at Rs 24.5k Cr. Markets opened deep in red and continued to sink to close nearly 3.5% down. Nifty closed at 4853 down by 154 points and Sensex closed lost 490 points to close at 16289 levels. Nifty for the 6th consecutive day crashed down. Nifty after making a low of 4833, close marginally above the days low. RSI has been falling drastically. MACD has also given negative divergence.
Last time the Nifty in the month of Sep dropped down to 4806, but closed above 4941. That time also, I had mentioned that the Markets will correct further, but that did not happen, but the markets pulled up, and faced resistance at 5185 levels. Markets will continue to correct. We might see pull back rally but that will not sustain at the higher levels. Nifty will find support at the trendline. But the close below the same will take the Nifty to 4600 levels too. In the past too we have seen Nifty finding support at 4800 levels. Watch out for the same.

Finaaalllllyyyy…. Correction on the way

Finaaalllllyyyy…. Correction on the way

It’s been a long wait for the Bear’s….

Finally the markets corrected and that too heavily. Indian markets closed down 4% week on week basis. Selected frontline stocks have been bashed down badly on back of their bad earnings. LNT corrected sharply after it announced it quarterly results. But ITC & RIL counters saw sharp jump in its prices after the results.

Indian markets tanked nearly 4% week on week basis. As mentioned in my article also, that the Nifty is facing resistance at 5300. Last year in the month of May 2009, Nifty faced stiff resistance and corrected to make a low of 3800 levels. This time also Nifty faced resistance at the same levels and corrected to make a low of 4954.85. In my personal blog also (www.technicalsvishaldangaich.blogspot.com) it was said the markets are heavy and we will see correction in the near future. Nifty faced stiff resistance at 5300 levels. I had also mentioned that the Nifty will find support at 5000 and close below the same will take it to the next level of 4944-4850 levels.

Markets tanked with a record volumes. On the last day of the week the combined turnover was the highest ever at Rs.159665 Cr. On Thursday, the volumes in the F&O was above Rs.1 Lac Cr. Global markets also saw some correction. Chinese Govt have finally pulled back the trigger on lending money and to curb the inflation rate.

In the last few weeks the markets stiff resistance at the higher side. Huge selling in the markets from the FII side. Volumes in the F&O have also gone past Rs.1 Lac. It seems so, that the markets Bears are not at all in the mood to leave the Bulls this time. Last time also the Bears tried to get control of the markets, but the Bulls last movement buying, helped Nifty to close above 4850 levels in the month of Nov. In the month of Oct Nifty faced resistance at 5185 and corrected to make a low of 4538. Markets then rallied in the month of Nov & Dec to face resistance again at 5185 levels, made double top and corrected again to make a low of 4950.

On the day of the week, Nifty found support at 20DMA, but could not sustain for long. Selling continued. Nifty tanked to make a low of 4954 on the last day of the week. RSI & MACD too turned negative.

Short ICICI Bank below 834 SL 840.

Short PNB below 900 SL 915

BUY Tech mahindra above 1137 SL 1125.

Markets corrected in a big way today. Sensex and Nifty tanked nearly 2.5% in the Intra day trade. Sensex tanked nearly 400 points and Nifty was down by almost 125 points. Nifty futures started trading in discount as soon as Nifty spot tanked below 5170 mark. Huge selling in the markets from the FII side. Volumes in the F&O have also gone past Rs.1 Lac. It seems so, that the markets Bears are not at all in the mood to leave the Bulls this time. Last time also the Bears tried to get control of the markets, but the Bulls last movement buying, helped Nifty to close above 4850 levels in the month of Nov. In the month of Oct Nifty faced resistance at 5185 and corrected to make a low of 4538. Markets then rallied in the month of Nov & Dec to face resistance again at 5185 levels, made double top and corrected again to make a low of 4950.

Most Imp point.... Few weeks back I have mentioned that the Nifty in the last year May month, started falling like a dead pin. This year too the Nifty will find stiff resistance from the same levels. Nifty could find some support at 5000 levels. Close below the same will take the Nifty to its first support levels of 4980-4944 and then to 4850 levels.

Yesterday Nifty closed below the trendline (Chart). Nifty may find support at its 100DMA near 5000 levels. Consecutive 2 days close below the same will be very painful for the markets.

As mentioned in my last blog also, that the markets are looking heavy. Markets continued continued to show weakness and shrinked for another day. Nifty closed down at 5221. 20DMA gave good support at 5200 levels. Markets should continue to see some more correction in the near future. RSI continued to trend downwards. Negative divergence is seen in the MACD chart pattern
Since last few days, I have mentioned that the Nifty is facing stiff resistance at 5300 levels and the Nifty can come down to 5170, close below the same can take the Nifty to 5050 levels.

==>>PSU rocking

Its seems that the markets were opened only for the PSU stocks. I really do not remember the last time when the Govt owned companies had this kind of fantastic rally. Mostly all the PSU stocks were locked in the upper circuit. others which were not locked, they were up nearly5%. But the markets reacted opposite. Since last week, the markets are closing with marginally gains or marginally low. As mentioned in my last few articles the nifty is facing stiff resistance at 5300 levels. Today Nifty made a high of 5287.80, but closed down deep in red at 5224 losing nearly 50 points from yesterdays close. We can clearly see that the Nifty is facing resistance at the 5300 levels. This time the markets should surely come down. Nifty will find support at 5170 levels. close below the same can take the Nifty to 5050 levels. Nifty trading in a very narrow range. Breakout either way will be too fast and too sharp. MACD too showing weakness. Selected Midcap continued their dream run.

Markets opened up week.

Markets wiped off all of its yesterdays lost glory. After opening in red, markets bounced back after post lunch session. Nifty after making a low of 5170 closed up in green by 25 points at 5235.75. Nifty in the past faced resistance at 5150 levels. In the month of Oct 2009, Nifty faced resistance at 5150 levels and crashed down to make a low of 4538 level. This time the Nifty have taken a good support at the same and bounced back sharply. Close below the same will take the Nifty to 5106-5087 levels. On the higher side Nifty will continue to face resistance at 5235.
RIL Ind counter will once again see a major block deal in the near future. Price may surely some correction after that.

As mentioned in my last article that ALL is not WELL in the market. As said in my last article that the markets are looking heavy and might come down as Nifty is facing resistance at 5300 levels. Nifty after making high of 5300 levels, closed down at 5204. Even after strong opening & very positive IIP data, markets continued to slide down. RIL Ind hinted that some more treasury stocks can be sold to raise more funds for the Lyondell Buy. As mentioned yesterday that, according to me this was the only reason the markets pulled up. One of the Top newspaper also covered this story.

AALLL IS WELL??

Is everything ALL is Well in the markets.

As mentioned in my last article that the markets are poised to have a sideways or negative runway. Nifty after facing trouble to cross the 5300 levels, closed at 5249 after making a high of 5287. markets are trading in a very narrow range. In the chart we can clearly see that the Nifty is facing resistance at 5300 levels and took support at the trendline. Nifty close below 5238 can take the Nifty to 5200-5180 levels. Mukesh Ambani has once again sold its companies share from the Treasury raising some more funds from the markets. It seems the RIL shares have been pulled up for only this reason. There was no other reason for the rise in the share price. Ril chart shows weekness and it may fall down to 1045 levels. Close below the same will take the stock price to 1026 levels.

It’s private party only for MID & SMALL CAP. NO FRONTLINE allowed

It’s private party only for MID & SMALL CAP. NO FRONTLINE allowed

I hope every one had a Blasting time on 31^st Dec 2009. Indian Markets have welcomed the New Year in a very special way. Retail clients might have definitely enjoyed the markets in this week. Midcap stocks and Smallcap stocks rocked the party this week. Leaving the Major Indices move in a very slim range of 0.5% to 0.75%. Midcap Index gained nearly 2.5% while Smallcap Index was the winner gaining almost 4% in a week. In the Year 2009, mostly frontline stocks enjoyed the party, but the scenario will not remain the same in the current year. Midcap stocks will outperform the Frontline stocks. New Midcap and Smallcap funds will be out in the markets.

This week the only looser in the Index was IT Index loosing 5%. Reality stocks gained the most 5.8%. HDIL & DLF rallied 8.5 & 7.5% respectively. Metals also did pretty good by gaining almost 4.5% while Oil & Gas Index gained 2.2%. There were equal numbers of the gainers and the losers in the Index list. Grasim gained the most 11.3%. JP Ass was up 10.5%, Cairn was up 8%, Siemens 7.8% & Tata Power & MNM 7%. In the losers list Maruti topped the charts by losing almost 8% in the week. In the IT stocks TCS lost 7%, Infosys & HCL tech lost about 5.2%. In the small and the Midcap Ucal fuel gained 54%, Bombay Dyeing 25%. Satyam was up 15%, Uttam Steel 13%.

Global Markets too ended flat in the week. No major activity by the FIIs and the local Inst left the markets will a marginal gain of just 0.5% on week on week basis. Despite the extension in the trading time, volumes in the markets remained subdued. Reliance block deal on Monday showed some volumes in the Exchanges. F&O volumes have been decreasing day by day.

Nifty slipped below 5250 levels on profit booking. Nifty made a high of 5310.85, but failed to close above the same. It closed at 5281.80 on the same day. Since then Nifty has been slipping. On week on week basis Nifty closed at 5247. In the past also last year, Nifty faced resistance at 5300 levels. This year too Nifty facing resistance at the same level. In the last week, it was clearly mentioned that the Nifty will find resistance at 5300 levels. Nifty made high of 5310. Nifty faced stiff resistance at 5200 levels also, but we saw decisive breakout the same. Now 5200 levels will prove to give good support at 5200 levels. Nifty can be bought we the SL of 5200 levels, we might see Nifty touching the same, do not panic, hold ur positions till 5181 levels.

BUY Rel Cap above 915 SL of 896.

Short Bharti Airtel below 323 SL 326

BUY DLF above 396. SL

BUY Gail above 430

Short HDFC below 2600 tgt 2550

Nifty after making its 22 month high finally paused. Nifty faced resistance at 5300 levels. In the last 2 days the candlestick pattern suggested that there will be some pause in the current rally that started after the breakout above 5200 levels. Attached here with the previous day chart also. Nifty faced resistance at 5300 levels in the past also. We might some correction in the future. Midcap will continue to do good. Profit booking was seen in the banking & financial. AUto and the Pharma stocks too corrected heavily, that lead Nifty to close at 5256.50 down by 25. Nifty will find support at the 5200 levels.