Dear Investors
Friday’s impulsive rally was hammered down on Monday
By same factors, Inflation, Fear of Diesel price hike, petrol and
Even closing value of Nifty and went on falling below 5500 to
Close below that at 5499.For last few trading sessions 5500
Is acting as a ‘Blind Spot’ for traders and analysts?
The breadth was bad and volumes reasonable
Data for the Day:
Open: 5541(18492)
High: 5541(18492)
Low: 5487(18319)
Close: 5499(18345)
Advance: Decline: 1052:1713
Turnover: 108000 Corers
What Next
Market has become extremely unpredictable, it is
Unable to sustain higher levels, the level of confidence
Is at its low. Unless up moves continue for 3 to 4 consecutive
Sessions it is difficult for the bulls to breath, every higher
Level is sold off, no news seems to be good news for
Market while small bad news is big news for ‘Bears’
In such circumstances the best way is to ………
Wait till markets get stabilized in certain trend or consolidate
In some range, till that time better to be away from trading and
Investing,
Levels to watch
Upward: 5563(18588)/5602(18678)/5659(18877)
Downward: 5470(18270)/5420(18105)/5380(17901)
Technical View:
Pivot at: 5509(18385)
Immediate resistance for Nifty is at 5537(18498) which is
5 DMA, and 5563(18558).
As long as Nifty is below 200 Day Exponential average @
5602 it will be in a downward pressure at all higher levels.
Support for down move is at 5480 and 5420. If Nifty breaks
5420 and close below it then market is headed for a steep
Correction up to 5330
Unless Nifty moves above 5758 (200 DMA) it will be struggling
To maintain the up move.
Watch the levels
5602 and 5420
Market strategy:
Trade low
Carry short positions up to 5602
All existing long positions should have a stop loss
@ 5420 and can be carried up to 5630.
Fresh shorts can be created at 5600 and 5400
Treat 5600-5650 as no trade zone
Keep away from Autos, Banks, Reality
Have small positions and book early profits in
Both long and short trades.
Try to generate maximum cash
COMMENTS
Trading has become most difficult, No news is good news for ‘Bulls’
Every up move is getting ‘Hammered’ by the ‘Bears’. Volumes on
Down day are more while up moves are with thin volumes suggestive
of weak ness in rallies.
It is advised to remain away from market or go short at every higher
Levels. This is not buy on dips market so best way is to create and
Carry shorts with a stop loss. Profitable trades should be used to
Generate ‘Cash’ for buying at lower levels.
It is better to postpone ‘Investment’ buying till markets get stabilized
In a range for some time.
Once Nifty breaks below 5400/5380, there will be a ‘Panic Response’,
Which will take markets to the new lower range of 5310/5177.
Traders and investors are advised to follow technical levels judiciously.
Stock Specifics
HUL
ITC
Colgate
Bahrti
Lupin
Ranbaxy
Suzlon
Camphor and Allied
Gati
GMDC
Petronet LNG
Blue Star
Ador Fontec
Polaris
NIIT
IMPRESSION
STRUGGLING
Thanks
Dr. Vasant Bele
All the views are personal, invest with caution and after
Consulting experts
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