The world indices favour but the Indian markets reached critical level for a small correction that can back to 4235 level.
The RIL has resistance 1906-08, SBI has resistance at 1588-93 level, RCOM at 539-41, Tata steel has resistance at 676-73 level.
The Nifty likely to open below 4398 level and low shall be below 4371 level, if the low below 4363 bears run the day. In case Nifty trades above 4393-96 level no shorts but long in Tata Steel, Ranbaxy, NTPC above 165 Stop loss at 162.85. The Satyam good above 453, infy above 1863 and wipro above 473-71.
Friday, August 31, 2007
Techs in the Making of Sugar Stocks!
The roll over is good for Sep-07 and the Nifty crossed 4350 comfortably and maintained the up move to 4223+. (Pls. read earlier post…... In case Nifty retraces from 4365 without touching 4425-28 then the bears celebrate in advance for a deep correction). So bears have to wait for some time….
The good days are exhausted for the techs to rule the Indian Stock markets and the golden days are over to influence the Indices any more. They can invite more troubles than sweet news. The future is becoming bleak to dark as the days passes and days ahead. The future quarterly results are likely to see more foul cry on the issues that emerge continuously and likely to see their fate as the Sugar industry is enjoying now.
The time frame can be 5-6 quarters from now. The valuations enjoyed are stagnant and the future P/E ratio will be adjusted to 8-12. The more they diversify, greater the safety in running the business. The top managements have already identified the trouble and preparing to combat the imminent adversities.
The good days are exhausted for the techs to rule the Indian Stock markets and the golden days are over to influence the Indices any more. They can invite more troubles than sweet news. The future is becoming bleak to dark as the days passes and days ahead. The future quarterly results are likely to see more foul cry on the issues that emerge continuously and likely to see their fate as the Sugar industry is enjoying now.
The time frame can be 5-6 quarters from now. The valuations enjoyed are stagnant and the future P/E ratio will be adjusted to 8-12. The more they diversify, greater the safety in running the business. The top managements have already identified the trouble and preparing to combat the imminent adversities.
Wednesday, August 29, 2007
F&O closure made the difference
As posted in the morning, the Nifty got good support at 4226, RIL got support at 1845 and ICICI got the support 841 as identified in the morning. The RCOM did not trade below 505 but SBI and Tata Steel opened well above their support levels.
There was no surprise with the de-linking move of the Indian markets as the expiry of the August series scheduled for tomorrow. The markets likely to be choppy and the moves could be wild for tomorrow.
The investors in Tata Steel can book their profits tomorrow those who continued their longs as suggested (earlier post-.."The metal space may correct but Tata Steel has the potential to cross 638 if it trades above 603").
There was no surprise with the de-linking move of the Indian markets as the expiry of the August series scheduled for tomorrow. The markets likely to be choppy and the moves could be wild for tomorrow.
The investors in Tata Steel can book their profits tomorrow those who continued their longs as suggested (earlier post-.."The metal space may correct but Tata Steel has the potential to cross 638 if it trades above 603").
ADRs in “Red”, Spreads to Indices!
No surprise as the rally cannot be sustained on a weak foundation so the world is taking the profits and the cause is a known factor-SUB-PRIME.
The Nifty likely to open below 4285 and can get support at 4245-48 at first level and may get strong support at 4221-18 level. The RIL has support at1846-48 level, SBI at 1493-98 level, ICICI at 841-43, the best at 822-23 level. The Tata steel has support at 581-83 and the good support at 566-63, RCOM likely to trade below 500.
The overall market will be in red and the right opportunity to buy may emerge tomorrow once the profit booking being absorbed.
The Nifty likely to open below 4285 and can get support at 4245-48 at first level and may get strong support at 4221-18 level. The RIL has support at1846-48 level, SBI at 1493-98 level, ICICI at 841-43, the best at 822-23 level. The Tata steel has support at 581-83 and the good support at 566-63, RCOM likely to trade below 500.
The overall market will be in red and the right opportunity to buy may emerge tomorrow once the profit booking being absorbed.
Tuesday, August 28, 2007
The bottom building exercise!
The Nifty took support at 4280 as thought the closing would be, this helped Nifty to close above 4320 which is very much needed at this hour to threaten the bears. So the tomorrow move will make a clear difference on which side the Nifty is ready to go.
The RIL has made a stellar move by crossing 1863 and reached 1890, this saved the debacle in spite of ICICI’s negative move. In the steel sector Sail moved up. As expected, BHEL closed in red and L&T stayed in a subdued move but they stayed in positive as the Nifty stayed in positive against the expected 20 pts. down move. The SBI stayed almost the entire day above 1545 but could not trade above 1565 a necessary condition for an up move to touch 1640+.The Index heavy weight scrips moved almost 10-15% from their lows. It is very likely that the profit booking is in the offing. But that does not change the course of upward journey made from 4000.
So long the ICICI stays above 815-18, SBI above 1448-51, Bharti stays above 805-06 and RIL above 1741-45. The Nifty has strong support above 4108-10 until then the bulls strength won’t wane away.
The RIL has made a stellar move by crossing 1863 and reached 1890, this saved the debacle in spite of ICICI’s negative move. In the steel sector Sail moved up. As expected, BHEL closed in red and L&T stayed in a subdued move but they stayed in positive as the Nifty stayed in positive against the expected 20 pts. down move. The SBI stayed almost the entire day above 1545 but could not trade above 1565 a necessary condition for an up move to touch 1640+.The Index heavy weight scrips moved almost 10-15% from their lows. It is very likely that the profit booking is in the offing. But that does not change the course of upward journey made from 4000.
So long the ICICI stays above 815-18, SBI above 1448-51, Bharti stays above 805-06 and RIL above 1741-45. The Nifty has strong support above 4108-10 until then the bulls strength won’t wane away.
World is flat to 50:50
The POWER play is on at Indian political adjustments by constituting a committee on 123 Nuclear deal. The committee can consume enough time to save the Left and Left can say, “Right go a head” after some time. This can be expected to take 6-12 months as postponement.
The situation at the world markets is flat with negative bias. The ADRs also in red with 1% and some are in green. The markets under performed with 50-60 points at Nifty, it lost on political turmoil.
The day can be expected to open with 4315-18, incase Nifty failed to cross 4325 then the selling pressure comes at the first hour. The RIL has to cross 1863-65 on the back of the positive news on “Gas Pricing”. The metal space may correct but Tata Steel has the potential to cross 638 if it trades above 603. The BHEL and L&T may see 2% correction, so it is very likely that the Nifty may close at 4281-79 level. The Banks has room for further upward and the support likely to continue up to Sep-07 results.
The situation at the world markets is flat with negative bias. The ADRs also in red with 1% and some are in green. The markets under performed with 50-60 points at Nifty, it lost on political turmoil.
The day can be expected to open with 4315-18, incase Nifty failed to cross 4325 then the selling pressure comes at the first hour. The RIL has to cross 1863-65 on the back of the positive news on “Gas Pricing”. The metal space may correct but Tata Steel has the potential to cross 638 if it trades above 603. The BHEL and L&T may see 2% correction, so it is very likely that the Nifty may close at 4281-79 level. The Banks has room for further upward and the support likely to continue up to Sep-07 results.
Monday, August 27, 2007
A positive step forward!
As posted the Nifty opened above 4235, crossed 4263 and the short covering can be seen when reached 4295-4306 range and touched a high of 4310.The RIL in the morning session did not cross 1815 but after noon touched 1840 and RCOM crossed 525. The 1485 resistance for SBI has become support today and rallied there after crossing 1545 to 1560+. The ICICI crossed 863 and stopped at the resistance level at 888.
Today’s move helped bulls to threaten the bears to cover their recent shorts made below 4075 but the real challenge a head to carry the up-move above 4379-85 levels. The offloads due to lower level deliveries and selling pressure of bears move to many frontline stocks come when the Nifty crosses 4365.
The Nifty likely to move for 10 trading days between 4100-4440 before it make a fresh bid to cross the all time high. In case Nifty retraces from 4365 without touching 4425-28 then the bears celebrate in advance for a deep correction.
Today’s move helped bulls to threaten the bears to cover their recent shorts made below 4075 but the real challenge a head to carry the up-move above 4379-85 levels. The offloads due to lower level deliveries and selling pressure of bears move to many frontline stocks come when the Nifty crosses 4365.
The Nifty likely to move for 10 trading days between 4100-4440 before it make a fresh bid to cross the all time high. In case Nifty retraces from 4365 without touching 4425-28 then the bears celebrate in advance for a deep correction.
The world is Positive!
The world indices are running on bulls support. The positive cues can be extended to India also. The expiry of August will bring some volatility more than the normal.
The Nifty has recovered 190 points from the low when it lost 645 points from the highs. The sub-prime issue has effected more than rest of the world. Is there any indication emerging?. The internal political turmoil is subdued but not resolved, so the markets are looking for strong commitment from the Govt.
The stocks that lost most of their value in the recent past are infrastructure & reality sector and the metals space. The power sector and the equipment manufacturers recovered all loses made during the fall, where the cement sector out-performed the rest to date from the closing of July expiry. The techs and the Bank stocks moderately recovered from the damage. The telecom giants not favoured as they used to enjoy. Till date, as the price recovery is an indication then the bulls are supporting the power and the fertiliser stocks than the media and the telecom. The Pharma and the auto are now building the bottom support and very likely that they may participate from here.
The Nifty has recovered 190 points from the low when it lost 645 points from the highs. The sub-prime issue has effected more than rest of the world. Is there any indication emerging?. The internal political turmoil is subdued but not resolved, so the markets are looking for strong commitment from the Govt.
The stocks that lost most of their value in the recent past are infrastructure & reality sector and the metals space. The power sector and the equipment manufacturers recovered all loses made during the fall, where the cement sector out-performed the rest to date from the closing of July expiry. The techs and the Bank stocks moderately recovered from the damage. The telecom giants not favoured as they used to enjoy. Till date, as the price recovery is an indication then the bulls are supporting the power and the fertiliser stocks than the media and the telecom. The Pharma and the auto are now building the bottom support and very likely that they may participate from here.
Sunday, August 26, 2007
The positives @ critical levels!
The Nifty could likely to cross 4385-92 range by the expiry of August month. The strength is not seen in the move but no threat to bottom support. The growth story becomes rosy only when Nifty opens above 4235 and cross 4263 level to see the short covering support. As a matter of fact, Nifty shall trade above 4295-4306 levels as early as possible to see a good support from the bear covering and buoyant move from bulls to up move.
The RIL is facing considerable resistance at 1800 level in-spite of the good news from the company. The RIL shall not trade below 1735 to see the up move continued and RIL should cross 1815 level in two trading sessions to avoid the bears on slaughter. The ICICI and SBI shall trade above 863-69 and 1485-93 levels for a safe Nifty positive move. The rest will follow the leaders as Bharti will cross 890 level and RCOM cross 518-21 level.
The RIL is facing considerable resistance at 1800 level in-spite of the good news from the company. The RIL shall not trade below 1735 to see the up move continued and RIL should cross 1815 level in two trading sessions to avoid the bears on slaughter. The ICICI and SBI shall trade above 863-69 and 1485-93 levels for a safe Nifty positive move. The rest will follow the leaders as Bharti will cross 890 level and RCOM cross 518-21 level.
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