Vision is not clear

Dear Investors

There is no clear vision as far as the market direction is concerned. Common investor and even HNIS are not sure regarding market movement in near future. Market needs stability to take any direction, market must get ‘CONSOLIDATED’ in a small range. Due to day to day POSITIVE and NIGETIVE news flow from

Various directions, market is going through a very high’ Volatility’, leading to uncertainty in the minds of investors(Bulls and Bears)

The Balancing has to done between,

THE POSETIVES

• Good performance by the companies
• RBI increasing the banking liquidity
• Reasonable valuations of stocks
• High cash holding by the Investors
• And Fund mangers
• Loose monetary policy and Quantities easing in US
• High Advance Tax collection 

  

As against, 

THE NEGATIVES

• Concerns ‘REGARDING POLITICAL SITUATION IN COUNTRY’
• The issues like ‘Rahul Gandhi’s’ remarks, ‘Raja’s’ corruption’, Radia affair, Opposition Not allowing ‘PARLAMENT’ to function,
• Entire situation does not give ‘time and will’ to the Government, to execute the policies and plans so as to keep ‘Economy’ in high speed,
• Different SCAMS and involvement of companies in it,
• Rising food and commodity prices, not allowing ‘Inflation to settle down,
• Rising oil prices and pressure on currency,
• Down gradation of number of European countries by world ‘Rating agencies’,
• China tightening its economy,
• Last but not the least is very high ‘VOLATILITY’ in stock market.

All this is not allowing technical of the market to work, even though the

Technical data is indicating a short term ‘Upwards BIAS’

Market Technical

Nifty Closed at: 5948 (High: 5965, Low: 5855)

Pivot is at: 5922

R1 (First Resistance): 5990

R2 (Second Resistance): 6032

R3 (Third Resistance):6090

Any strong move (on closing basis) above this zone will mean that the Nifty can move on to a new zone, 6220- 6300

Suggestion: Traders can book part profit on their long positions at 6090 levels

S1 (First Support): 5880

S2 (Second Support): 5812

S3 (Third Support): 5770

Suggestion: If market remains above the third support levels on can take long positions with a stop of 5690

However decline below third support can take Nifty to most critical support

Level 5690, decline below which Nifty can head towards 5501.

Markets need to consolidate in the range 5690-6220 to go ahead and form new high or change medium and long term trends ‘Downward’

It is still not advised to take ‘Investment Positions’

If some one wants to play markets under the clouds of uncertainty

Do think of few stocks to trade.

TISCO

BHARATI

MPHASIS

POLARIS

HEXAWARE

SONATA

ROLTA

TUTIS TECH.

ALOK

ARVIND

HIMMATSINGKA

SHIVA TEXYARN

SURYALATA SPINNING

BILT

GMR Infra

CHAMBLA FERT.

BALAGI DISTILLARIES

EMCO

GODAWARI POWER AND ISPAT

REPRO INDIA

NIFTY BeEs

 Can avoid Banking/ Auto / Reality

TRY TO TEAR THE CLOUDS

Thanks

Dr. Vasant Bele

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