The weakening of stocks…..

The real problem with the Nifty is that the heavy weights are now in bear grip except ONGC, LT, BHEL are in consolidation mode. In case these counters fail to stand up to the cause then the sentiment will become worse, which can lead the markets below 4000 level. As of now the momentum become weak but the bottoms are still in tact. So the markets are looking for some short term triggers to take back to 4600 level.

The Inflation is still causing the damage; the RBI may again put some fiscal measure if it finds the inflation scale up in food items then the challenge will be more challenging. The only positive factor right now is the MONSOON.

The Nifty may find support at earlier suggested level and the real challenge for this day is to cross the 4461-63 resistance with ease.

The stocks that are important to observe are Bharti and ONGC. The Bharti shall cross the 819-21 level resistances and ONGC shall trade above 1085 for an hour and shall cross the 1096 resistance to see the strength of market at this point in time is intact.

In my earlier write-up (Real bull move….dt.8-8-08) it was mentioned that the Essar oil may correct further and bounce back from 216-18 level. Today it could close at that level, the best support available at 203-05 level and the markets lost more than 250 points with out any interruption.

The SGX Nifty is now trading with 56 points down, The Hang Seng is down by 125 points but the Nikkei lost more than 340 points, yesterday it could stay in positive territory.

To find the halt in the down ward move, it is good to observe that the SBI shall not trade below 1360-65 level, Bhel shall not trade below 1550-45 level, LT shall not trade below 2530-40 level and ONGC shall not trade below 980 level.

Most of the stocks are showing skewed moves that may cause confusion while trading. So let the dust settles and the confusion vanish in one or two days.
The Nifty is having resistance at 4451-53 level, good if it could trade above 4416 -18 level, the first support in the down move is at 4336-30 level and the best for this day is at 4302-4296 level. Good luck.

The STOCK-TRADING is a “Skill-FULL Job”. NEVER blame others for the LOSS/DEALS.
Never Forget: I may be wrong, You may be wrong but markets always RIGHT.