Direction less

Dear Investors,

On Friday markets closed at very crucial levels. Sensex at 19996 and Nifty at 5992. Dow also closed in positive territory and S&P closed at two year high. Europe has not given any more shocks.

Asian markets are at good positions BUT, situation in homeland is not that good on scam front, RBI, PSU banks in fighting mood, and aviation ministry keeping aviation companies in tight spot. Politically UPA government is in difficult situation even though agricultural development was good at places like Maharashtra where farmers are washed out by ‘unusual rains’ asking one more monetary help.

It is difficult to take positions in market as there is very high volatility. Volumes are less and F&O POSITIONS are not great. So, all this sums up a ‘Confusing’ situation for investors in India as well as out side India.

There has to be a ‘phase of consolidation’ for markets to exhibit a definite trend. Market is moving between 5690-6030 range and ultimately getting settled at 6000. Nifty is facing stiff resistance at 6040. If at all it has to show upward trend then it must cross 6040/6115/6220 levels on closing basis with good volumes. On the contrary if Nifty breaks 5960/5920 level then there is every chance that Nifty may test 5800/5745/5690/5620 levels, which are very important supports on downside. Beyond this the ‘Trend’ may get reversed.

SO, watch for the market movements. Do not rush for positions beyond ‘day trade’, that too with right trend and with strict stop losses.

Volatility will be the ‘Most Predominant’ trend. Those who are willing to take risks watch for,

1. Jagaran Prakashan
2. Polaris soft
3. Ashok Leyland
4. IRB
5. Bharati
6. Idea
7. Indus ind Bank
8. DCB
9. KFA
10. BGR Energy
11. Renuka sugar

Sectors to watch are,

FMCG, PHARMA, IT, SUGAR, and TEXTILES

REMEMBER IN CONFUSION ‘TREND’ IS BEST  FRIEND.

Happy sailing through the storm

Vasant bele

Disclaimer: Views expressed are mine. Take your own investment decisions.