Tug of War

Dear Investors

Nifty and Sensex closed in a marginal down level. It was a day

Of ‘Tug of War’ between Good boys and Bad boys, Traders

Were waiting for some action to take place but the show

Ended in a ‘Tame Draw’

Advances 1,376

Declines 1,574

Volume was good

Over all there was no activity on either side,

Levels Of the day

Nifty: Open 5854, High: 5906, Low: 5857, Close: 5874

Sensex: Open: 19538, High: 19697, Low: 19531, Close: 19584

What Next

Really a great question, no body knows what next, some call

This as ‘Consolidation’ some ‘A range bound’ and some

Say it is ‘side ways’ all this indicate, no body knows………

What Next? And I too…..

But still I will be sitting in front of the screen tomorrow @ 9 am

And wait for the action, because I can not wait on side lines,

The suggestion is, wait till some action happens on either side.

Or some eventuality in Global or local economic field takes

Place to move  stock market in some decisive direction, because

The status co makes every body to loose.

If you can not wait,  then…

..

Trade with small positions and with stop loss or early profit

Booking.

When nothing is happening on ground levels, better

To follow technical.

Levels to watch:

Upward: 5901/5925/5959

Downward: 5850/5803/5776

Technical view

Pivot at: 5879(19604)

Nifty has an immediate resistance at 5909, unless

It crosses this with volume and close above it, Nifty

Will not be making a decisive move towards the

Vital level of 5959, which is the top of the range

5690-5959. there will be lot of selling pressure at

This level leading to a substantial correction.

5959 is important retracement level of the fall from

6275 to 5310. This will act as a wall in the journey

Towards 6003/6090

Nifty had corrected from 5959, 4/5 times, and taken

Support at 5700 to bounce back. Immediate support

Is at 5806(5DMA), if broken then 5784(20DMA) and 5700.

All long positions should have a stop loss at 5806

(5DMA) for day traders

It is advisable not go short till Nifty breaks below

5784/5735(200DMA)

  COMMENTS

Equal and opposite forces(in market) are pulling markets

On either directing to keep it ‘Flat’ ‘Range bound’ etc.

Events like

Falling $Index,

FII Buying

Some good results

(Sterlite/Maruti..)

Nifty above 200DMA

Are keeping bulls in strong position

While

Tuesday’s Fed meeting

Nearing Settlement on Thursday

2G Charge sheet &political apathy

Rising crude

All these are trying to pull bull’s legs

 This is keeping our markets in a tight range.

Unless some drastic change occurs we will

Not be moving out of ‘Woods’

Till that time on has to be cautious and safe.

Long term investors can try picking at all lower

Levels while short term and positional traders should

Watch the events with caution .

 Market strategy

 Short term traders should watch the levels of 5901/5928 as

 Immediate resistances, with supports at 5830/5803.

 For an up trend to continue, Nifty has to remain above

 200DMA @ 5735 ON CLOSING BASIS

 As long as Nifty is above 5750 it is advised to avoid

Positional shorts, Day shorts should have 5880/5903

As a stop loss.

All dips to lower levels up to 5776(20 Day Exp. Average

Should be bought for positional trade.

Long term investors should buy at major corrections

Or panic falls as long as Nifty is above 150 Day Expone.

Average @ 5658

Stock Specific

Sesa Goa

ICICI Bank

M&M

Hindalco

Allahabad bank

Tutis Tech.

Gati

Sharp ind.

Ador Fontech

Artson Eng.

Geodesic

Celestial Lab.

Graphite

GMDC

Thanks

Dr. Vasant Bele

All the views are personal, invest after consulting experts