Dear Investors
Exhausted bulls failed to lift Indian stock market beyond few
points above yesterday are close. Markets started with a positive
opening and added some gains during the day but profit booking
by trapped investors brought indices to a flat close.M&M, Tata power,
Cipla,ONGC and Bajaj Auto tried the best to take Nifty in positive
Territory while, HUL,Ranbaxy Bharti and Maruti pulled it down
to close neck to neck. Though it was a flat close, breadth was negative
and turnover was average.
Data for the Day
Indices
Open: 5304(17659)
High: 5310(17678)
Low: 5262(17492)
Close: 5278(17550)
Advance Decline: 1070:1821
Turnover: 1, 10,000cr
Gold: 1556$/oz (22600/10gm)
Silver: 36.35$/oz (54500/kg)
Crude: 94.2$/brl
Dow:-80(12109)
S&P: -8(1287)
Most of the Asian markets ended the day in Green
While Europe was trading in Red
What Next:
All depends on ‘Event Manager’ like Fed Governor
Ben Barnanke, as the meeting regarding effects of QE2
And prospects of QE3 will be concluding to night,
Investors are waiting for the Federal Reserve's latest economic
outlook and comments from chairman Ben Bernanke on Intrest rates
also
Most expect the Fed will keep rates steady, but investors are keen
to hear what Fed chairman Ben Bernanke has to say about the
economy.
The Fed will also update its estimates for economic growth, and
many economists expect the central bank to reduce its outlook
for the year.
It is the game of predictions and projections, like Met Departmen
Changing Monsoon predictions, Government projecting fresh
Dates for FPOs and EGoM meet etc. is not allowing markets to
Stabilize in one directions leading to volatility and unpredictability.
In such circumstances it is better
Not to predict
Not to Participate
Not to pay for some one else’s mistakes
When every thing is unpredictable only technical levels can
Guide to some extent.
Levels to Watch
UPWARD: 5318(17699)/5356(17800)/5420(18067)
DOWANWARD: 5240(17390)/5208(17310)/5177(17296)
Technical View:
Pivot at: 5283(17573)
-Nifty has closed below all the moving averages like
5DMA (5348/17811)
10 Day Exponential@5373 (17889)
20 Day Expo@5429 (18081)
Indicating that short to medium term trend is down.
- Nifty has to close above 5515 to resume its up move
But will face resistance @ 5318(17699)/5355(17840)
And 5420(18067)
-As long as Nifty is trading below 5650/5710/5757
Levels it will be in a down trend.
-If Nifty moves below 5220 it will have a support at 5177
Which will be the crucial level to be watched, if taken away
On closing basis Nifty will move in to a new range of 5150/5050
Market strategy:
-Keep away till events get over and a trend sets in.
-Do not trade in first half an hour
-Go long in beaten down Banking/Auto and capital good
Sectors with a strict stop loss.
-Wait for fresh short positions till markets break below 5220
Or moves above 5480
-Existing shorts should have stop loss at 5480 and a target
Of 5177.
-No long term investments for the time being.
Stock Specific
ICICI Bank
Axis Bank
M&M
Bajaj Auto
L&T
Canara Bank
R.Com
Sanjivani Parenterals@33
Ahalcon Parenterals @64
Banswara Ind@124
Compuage Info@97
Praj @70
Parsvanath @50
Lovebale Lingeri@378
Jain Irrigation@146
SPIC@28
Nelcast @99
Yes Bank@288
Indus ind
V-Guard @220
All these stocks can be bought for day as well as positional
Trades, long term investors can buy in small installments with
A view of 12 to 18 months
COMMENTS
The uncertain environment all over the global economies is making
Investors worried about fate of the markets. As long as events are
Dominating theprices it will be difficult to predict the rise and fall
In stock markets
Economists, analysts and investors in India
Wondering, about the things happening in markets
Waiting, for the Government to act.
Watching, unfolding of Global Events.
The effect is, markets are moving in a nervous negative Bias.
In such conditions,’Cash is Heaven’
IMPRESSION
HANGING
Thanks
Dr. Vasant Bele
Al the views are persona, invest with caution and after
Consulting experts
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