The results..?

The election results and likely re-grouping will decide the Monday direction but the move so far is in favour of the bulls. The results out come may be negative for a day or two but the markets likely to resume the up-trend as the bottom formation right from the 3080 is good, consolidated at each stage with 200 points gap up to 3510-3530 level. So the panic sell-off on speculative rise can be restricted at 3361-51 level.

Market PULSE check by Stock-O-Meter: The Following scrips covered in my previous posting: The high, low, closings of 15-05-09:

NIFTY 3686.25 3597.85 3671.65
ICICI 579 542 574.70
RIL 1960 1911.65 1950.7
REL INFRA 847.7 808.35 820.20
REL CAP 598.9 575 591.55
ONGC 852.95 802.35 813.15
AXIS BANK 680 644.70 659.60
DLF 264.90 251.60 258.05
I may be right or wrong, You may like it or not but “No argument with the ticker-NEVER”

Caution or Chance....?

Yester day trade gained strength from the bottom is amazing despite of the weak signals from the political front in the country and also the overseas markets. The kind of buying emerging when the market falls provides an impression that the markets are likely to touch 4000 in near future if it closes and trades above 3622 with a condition that the markets shall not touch a low of 3440 level in near future due to uncertainty emerges after the results.

To day markets are in green and the SGX is suggesting a possible positive opening at 3630-40 level. The Nifty is good above 3624 level and weak below 3580 level for today. The Nifty may face series of resistance till it consolidates above the resistance at 36654-58 level.

The Reliance is still in Bull grip so long it trades above 1850-40 level, any move above is considered as consolidation process. The scrip may today see a correction in case it fails to trade above 1940 level.
The story of ONGC is different to script as it was forced to accept the transport costs of Cairn fields in Rajastan and the losses of OMC’s placing pressure to cross the 900 mark but it is likely to face serious resistance at 868-864.
The Rel infra has made a decent up move by crossing the resistance at 803-06 level, now the crucial point stands at 796-93 level.
The ICICI Bank despite of the up move it made long with other counters but failed to cross the resistance at 339-41 level. The ADR gained 6% shall reflect in today’s trade to cross the resistance at 661-59 level came two days back but will the poll results place the hurdle?
The Axis bank which continued to attract buying support on all declines failed to do so is sending a feeler on the market condition. In case it catches up on with the rest today then there is nothing serious otherwise…?. The bottom support was at 610-06 level and the scrip shall cross the immediate resistance at 653-55 level.
The Relcap is finding difficult to trade above 575 level but found support at 540 level. The counter is facing resistance between 575-590 level.
The come back of the reality sector is heartening for investors who lost the most in the recent fall but a long way to go to cover the distance.
The DLF as suggested in my earlier postings got support at 220 level and continued to enjoy the support as bottom boundary for 21 series of trading sessions except that 190.55 touched in the stake sale on 13th May.

Market PULSE check by Stock-O-Meter: The Following scrips covered in my previous
posting: The high, low, closings of 14-05-09:
Nifty 3631.90 3537.60 3593.45
ICICIBANK 540.00 519.00 536.25
RIL 1927.50 1880.20 1908.95
REL infra 818.40 765.30 809.60
Relcap 574.80 541.20 568.80
I may be right or wrong, You may like it or not but “No argument with the ticker-NEVER”

The election effect…..

The results of the exit polls, predicting a neck to neck fight for the power between the two with third option not ruled out put selling pressure in the late evening with basket sell-off in Indian equities. The US markets also sold off last night made the Asian markets to open lower. The Nifty is likely to open below or at the verge of support at 3570 level and the opening trades shall not force it trade below 3540 level which attracts more selling.

The Nifty now has resistance at 3581-88 level and weak further below 3540 level will get support at 3492 level with minor support at 3514 level.
The RIL has resistance at 1938-42 level has support at 1869 level and the second is below crucial 1850-40 level to travel further down.
The ICICI was weak below 539-41 level likely to test 490 level in this fall but for today it will again test 520 level and 511 level.

The other stocks are in the earlier suggested levels. The India Bulls Reality will fall with a high side cap at 146 to touch a level of 133 and at 129.0 but the HDIL is in strong bull hands so long it trades above 162-64 level.

Market PULSE check by Stock-O-Meter: The Following scrips covered in my yesterday posting: The high, low, closings of 13-05-09:

Nifty 3709.60 3610.20 3635.25
ICICIBANK 574.70 541.60 551.15
RIL 1975 1906.0 1933.
REL infra 825 773.60 798.0
Relcap 592.4 556.55 571.90
I may be right or wrong, You may like it or not but “No argument with the ticker-NEVER”

Buying and buying……

The markets witnessed un-precedent up move beyond expectations. The markets sensed the possible hassle free govt. formation at the centre and the foreign investments are now unabated. The stocks have become dirt cheap for them and the growth story is intact despite the poor IIP numbers contracted by 2.3% but the silver lining is that the power generation up by 6.3% and mining up by 0.4%. They are not deterred by the short-term month on month contracted numbers but focusing on overall long-term opportunity stored in as POTENTIAL.

The Asian markets are flat with negative bias. The US closed slightly in green but the NASDAQ was down by 1%. The Tata Steel plans to restructure the loan by prepayment; plans to raise 3000 crore through NCDs and plans for efficient use of Corus capacities in these turbulent times, layoffs could cross 10,000. The independent auditors will look into the books of telecos.
The RIL will repay nearly 15000 crores surplus cash flow due to the merger of RPL can save huge amount on interest. DLF wants to sell 10%, plans o raise 3850 crores through QIP route.

The Nifty is in Bull grip with yesterday move so long it trades above 3573-71 level. The immediate support for today’s trade is at 3640 level but the up side resistance is also close at 3720 level again at 3736-41 level. So a more consolidation moves on the cards.

The RIL is strong above 1894 but the resistance at 1963 and at 1981. The bull move has the potential to take it to 2040 to 2057 level.

The Rel infra has resistance at 803-06 level and become weak below 77169 level. The ICICI has resistance at 559-61 level and the second one at 576 level and the support exists at 542-44 level. The Relcap may test 583-86 level but become weak below 548 level.

The unwinding pressure……..

The markets took the heat of selling pressure from the Bears as well as from the Bull unwinding in the afternoon kept the indices low but the beauty part of the yester day trade was that Nifty did not collapse despite of such sustained selling. The market absorbed comfortable the selling pressure.
The notable gainers of big name are – Tulip IT and Nucleus software, AuroPharma, JindalSAW, Havells…etc. The reality sector and the metals were worst hit.

Market PULSE check by Stock-O-Meter:
The Following scrips covered in my yesterday posting: The high, low, closings of 11-05-09:

Nifty 3660.2 3534.55 3554.60
ICICIBANK 547.75 513 523.35
RIL 1928 1850.1 1861.60
REL infra 792.90 746.55 763.0
DLF 244.80 226.10 228.1
T.Steel 288.80 267.20 270.65
SAIL 127.15 118.20 120.15
JP ASSOCIAT 144.70 133.30 135.50
Relcap 595 540.8 546.50
ONGC 903.80 872.50 879.7
HUL 236.50 226 227.15
I may be right or wrong, You may like it or not but “No argument with the ticker-NEVER”

The crucial band……?

The counting begins this week itself even the last leg of voting is in progress. The markets will see the gyrations widely as the days running close the counting and announcement of the results. The positive news from the overseas markets could only prop up our markets but the challenge ahead of the week will be the big event of “forming the power centre with number portability” form political parties of smaller size. Now small is beautiful here for…?

The Asian market is mixed but the US performed well above 2% gains. The SGX Nifty suggesting a positive opening of 1% gains to our markets. The Nifty is close to the crucial point at 3650-60 level. The NIFTY is unlikely to hold above the 3680 level.

The Nifty is facing resistance at 3654-58 level and the support can be expected at 3571-73 and at 3541-39 level for this day.
The RIL is in the previous suggested levels. The SBI results are good despite a lower growth in the NIM but the concern for Bhat is to manage the unprecedented growth in the deposits as the Pvt. Sector bank failures in the west prompted the depositors to choose the PSU mammoth.
The SBI is good above 1375 and weak below 1347. The support exists at 1256-58 level but today it is likely to stay above 1296 level and may cross and close above the 1350 mark. In case it stays above 1350 the scrip has the potential to cross 1475 and then 1507.
The ICICI is likely to get support from SBI mood to cross the 536 mark but face resistance at 544 level.
The Relcap is good above 594 and weak below 573.
The Tata steel corus impact can be seen today. The inventory loss due to order cancellation by the consortium and the revival of the unit, fate of the employees will impact. Technically the scrip is Bull grip but the sudden developments impose pressure on the up move. So the counter may face resistance at 288 and the support is at 209-11 level once the 264 support is broken decisively.
The Govt. plans to ask ONGC to fill the loss of the OMCs may pressure this counter though the crude is ruling high above 58 dollars per barrel. So ONGC unlikely to stay above 900 mark due to this developments, even it stays not good to buy, but has good bottom support at 845-48 level and a series of reasonable supports.
The HUL bogged down by the private labels and more in future may place the stock at 202 and 194 level in future.

The pre-election rally ended..?

The strong consolidation of 3 weeks at 3332-82, Nifty took a leap to 3482 then jumped to a level of 3650 range. Nifty even touched an intraday high at 3717 level before closing the week at 3621 level. The noon-stop 9 positive weekly closing right from 6th march to day placed Nifty from 2609 to 3620 level.

The retail investors, DII and MFs who are very much cradled by the swings of 200-250 points either side at 2700. They presumed that the FII ran out of money and wanting more from the emerging markets, shorting the market at every rise and things like that kept them a side by waiting for the turn to “auspicious jump” has never happed till date but the stocks rose more than 100% from their distressed lows.

Now many started asking for a deep correction so that they can buy and hold for this kind of a rally like situation from where they can make an exit, even that won’t happen in near future. When everybody wanted to replicate the known model then how can any body “demand” for a premium?. It is as simple as that- “Not every body can afford every time to build a PALACE by each construction or even grave yards be dug every where”.