DA LAL STREET............

Dear Investors, 

An unstoppable selling through out the day caused ‘Blood Bath’ on ‘DA-LAL-STREET’

‘Bloody foot’ prints of ‘Bear’ were, all over the ‘Sectors; and large, mid and small cap stocks. Nifty closed near low for the day at 5417.

What Next?

Even though Nifty has taken support at 5400 , as the story goes back with all those ‘Supports’ getting collapsed ‘Brick by Brick’, it looks 5400 is going to get collapsed.

Only thing to be seen is, whether it happens after ‘Pullback’ or just nose dives.

Once 5400 is broken then the ‘Last Bastian’ will be 5330, if falls ‘flood gates of ‘Dalal Street’ will gate widely open to ‘Bears’

Now the immediate major support is at 5380, followed by 5330 from where this up move had started

Investors are advised to keep away from markets till definite trend emerges; Bears can create ‘Short’ positions with a stop loss at 5580 on upside and 5280 on down side

Adventurous traders are suggested to take ‘trading long positions’ above 5449 with a stop

At 5400/5380, and book profits at 5515/5580 levels

Investment buying can be done in selective ‘Large cap’ stocks between 5330-5515 ranges in small installments. Every rally should be used to book profits out of these positions.

Technical View

PIVOT FOR NIFTY: 5452

R1 (First resistance) is @ 5503

R2 (Second resistance) is @5589

R3 (Third resistance) is @ 5640

Significance

R3 (5640), which is above 200DMA (5624), is the only hope for reversal of the correction or CONTINUATION OF UP TREND. All the levels below that should be used to book profits or create shorts

S1 (First support) is @ 5366

S2 (Second support) is @ 5315

S3 (Third support) is @ 5229

Significance

Levels below S2 (5315) Will be a ‘Bearish’ signal for the markets

DMAs

5DMA@5545

20DMA@5746

50DMA@5870

200DMA@5624

Significance

To keep ‘revival’ hopes alive market should close at least above5 DMA(5545)

Any rise or bounce up to 5600 can be used to go short

COMMENTS

Various factors, Egypt, RIL Gas, Inflation, Rate hike and Crude above 90$,are not allowing Indian markets to raise its head above waters. The only hope for markets to get some strength is ‘Budget’. Till that time markets should hold the last ‘Bastion’ of 5300 otherwise there will be one more ‘Blood Bath’ on ‘Da-lal-Street’.

IMPRESSIONS

“Vertigo”

Stock Specific

No stock specific calls for the day

NO ‘Adventures’ PLEASE

Thanks

Dr. Vasant Bele

All the opinions are personal; invest after consulting your experts