As posted earlier the markets opened higher on Monday and Tuesday but failed to hold the gains made last week, as a matter of fact Nifty touched a high of 5368 a level that is most important for the bulls. (..The markets likely to open high but has to close above 5365-71 to continue the efforts made by the bulls during the week long fight against the bears/global concerns….). The real damage has done to Nifty today when it failed to hold above 5200 but the ray of silver line hope lingering at the other end of the tunnel that it could cover the losses by the week end and stays above 5263 will become a good sign. The positive side of the Nifty is still above 5085 on closing basis but the frontline counters failed to cheer the bulls.
Incase RIL trades below 2350, ICICI below 1066, ONGC below 930, SBI below 2128 and SAIL below 204 (very crucial levels) then there a serious damage done to the Nifty and will correct sharply to 4000 levels. The markets may take longer period to revive than expected earlier. As of now, I think that the bulls are inviting bears to sell as much they could to trap them heavily before the good news known to every body.
The Retail Investors can avail the opportunity to eat more stock-food to fatten the kitty but shall not expose to swallow the bullet.
Wednesday, February 20, 2008
Sunday, February 17, 2008
The closing is crucial….
The markets likely to open high but has to close above 5365-71 to continue the efforts made by the bulls during the week long fight against the bears/global concerns. The immediate resistance will come at 5471-85 level. The markets any way face resistance at every level but the crucial thing is that it should not loose the bottom support. The markets may oscillate for next two weeks till the budgets boosts the sentiment. The policy matters likely to infuse new blood in the markets if it stays above 5480 by Feb series. The blue chips in the banking sector building hopes on insurance sector and economic growth may find good support from bulls once the Budget sops announced to Heath insurance and the corporate tax cut. The FM will infuse large savings of industry and personal income to plough back for rapid growth well above 9%.
The pharma sector will get FII support as they encouraged the IT sector. So KOI- Keep On Investing in stocks that do the CRAMS business. The power equipment sector will be no more a favourate on the bourses but the encouragement will afloat the stocks at these levels. The boom in the realty will continue to stay and the stocks will out perform the Nifty. The emerging sector will be CNG and gas distribution in the towns. The RNRL will see more good days than now. The GAIL will benefit the most than the other stocks in the Nifty.
The Nifty will find first support at 5135 level and 5085 is crucial. Incase Nifty trades below 5085, then offload 50% of the holding. The RIL has support at 2356-26, Infy has support at 1441-45 levels but it is good above 1505-11 levels. The ICICI bank has support at 1135-30 and SBI has support at 2130-35 levels. The relatively weak counters are Bharti and RCOM. The Bharti has to cross 909 at the earliest possible time and shall trade above 850. The RCOM has to cross 645 and shall trade above 611-15 levels to see that the stocks get bulls support along with the Nifty advancement. The positive sentiment will become a foundation for next big movement when the Nifty trades above 5545.
The pharma sector will get FII support as they encouraged the IT sector. So KOI- Keep On Investing in stocks that do the CRAMS business. The power equipment sector will be no more a favourate on the bourses but the encouragement will afloat the stocks at these levels. The boom in the realty will continue to stay and the stocks will out perform the Nifty. The emerging sector will be CNG and gas distribution in the towns. The RNRL will see more good days than now. The GAIL will benefit the most than the other stocks in the Nifty.
The Nifty will find first support at 5135 level and 5085 is crucial. Incase Nifty trades below 5085, then offload 50% of the holding. The RIL has support at 2356-26, Infy has support at 1441-45 levels but it is good above 1505-11 levels. The ICICI bank has support at 1135-30 and SBI has support at 2130-35 levels. The relatively weak counters are Bharti and RCOM. The Bharti has to cross 909 at the earliest possible time and shall trade above 850. The RCOM has to cross 645 and shall trade above 611-15 levels to see that the stocks get bulls support along with the Nifty advancement. The positive sentiment will become a foundation for next big movement when the Nifty trades above 5545.
Some time needed…
The markets taken the timely u-turn to see new highs in future but it will take some time to do so.
As suggested in the previous posting the Nifty took a deep low at around 4800 and trapped the ardent bears to see further low. The earlier suggested level for the Nifty is at 5085 but to trap the bears it took a deep low at 4803 but took bottom support at that level for 3-trading sessions and the journey took the index to reach 5300 levels. This classic example can be correlated with the BHEL support at 2047 and then a trap to bring at 1850 levels to see the bears live in joy for a day or two. Try to understand the game plan behind the moves to understand the stock market operation.
The length of fall is so deep that it could take more time to bring the retail investors to market. The financially damaged retail investors tasted bitter experience with R-Power, are experiencing a series of failures at their investment decisions. They are now nostalgic to the heart pains/caused wounds. They need more time to forget the bad feelings of buying stocks and will become scapegoats again at the top.
So always “Buy Low and Sell High”- this could be a valid proposition only when one understands the market movements. The other way of investment in stocks is “Buy when the trader’s margin selling happens and Sell when the trader is confident to take delivery with margin”.
As suggested in the previous posting the Nifty took a deep low at around 4800 and trapped the ardent bears to see further low. The earlier suggested level for the Nifty is at 5085 but to trap the bears it took a deep low at 4803 but took bottom support at that level for 3-trading sessions and the journey took the index to reach 5300 levels. This classic example can be correlated with the BHEL support at 2047 and then a trap to bring at 1850 levels to see the bears live in joy for a day or two. Try to understand the game plan behind the moves to understand the stock market operation.
The length of fall is so deep that it could take more time to bring the retail investors to market. The financially damaged retail investors tasted bitter experience with R-Power, are experiencing a series of failures at their investment decisions. They are now nostalgic to the heart pains/caused wounds. They need more time to forget the bad feelings of buying stocks and will become scapegoats again at the top.
So always “Buy Low and Sell High”- this could be a valid proposition only when one understands the market movements. The other way of investment in stocks is “Buy when the trader’s margin selling happens and Sell when the trader is confident to take delivery with margin”.
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