MARKET TRADED NEGATIVE BIASED IN A CLOSE RANGE. REALITY AND BANKING SHARES WERE DOWN AHEAD OF CREDIT POLICY BY RBI ON 26TH JULY. NIFTY ENDED AT 5542, DOWN 25 POINTS AND SENSEX ENDED AT 18436 DOWN 66 POINTS. MARKET BREADTH WAS NEGATIVE AND FIIs WERE NET SELLERS.MID-CAP & SMALL-CAP INDEX WAS ALSO DOWN. SLUGGISH TRADE WITH POOR SENTIMENT DUE TO LACK OF BUYING INTEREST & NO CLEARCUT DIRECTION OF THE MARKET WAS SEEN.
NOW, MARKET IS IN WAIT & WATCH MODE, AHEAD OF CREDIT POLICY SCHEDULED TO BE HELD ON TUESDAY, 26TH JULY 2011. THOUGH MARKET HAS ANTICIPATED A RISE IN REPO RATE BY 25bps, BANKS HAVE URGED RBI NOT TO HIKE INTEREST RATE SO THAT THE CREDIT GROWTH IS NOT HAMPERED. ANALYST BELIEVE THAT MARKET HAS PRICED IN 25bps INCREASE IN REPO-RATE, WHICH IF NOT INCREASED BY RBI ON 26TH MEET, WILL TRIGGER THE MARKET TO BREAK OUT AT LEAST 300-350 POINTS IN NIFTY, TO TOUCH 5940 OR 6000 LEVELS. HOWEVER ANY HIKE TO THE TUNE OF 25bps SHALL MAKE THE MARKET DANCE WITH THE GLOBAL CUES WITH NEGATIVE BIAS AND ANY HIKE ABOVE 25bps SHALL BE KILLING IN THE MARKET SENTIMENTS. HOWEVER THE CHANCES OF HIKE TO THE TUNE MORE THAN 25bps IS VERY VERY REMOTE. HENCE CREDIT POLICY SEEMS TO BE THE NEAREST TRIGGER IN THE MARKET, BEFORE WHICH MARKET SHALL MOVE IN THE RANGE OF 5525-5585, HAVING SUPPORT AT 5490 & 5440, WHILE RESISTANCE MAY BE THERE AT 5610 & 5655 IF NIFTY BREACHES 5585 LEVELS.
NIFTY MAY OPEN POSITIVE NEAR OR ABOVE 5585, HOWEVER NIFTY MAY TRADE IN A LIMITED RANGE WITH NEGATIVE BIAS. THERE COULD BE PROFIT BOOKING ON EVERY HIGHER LEVEL TILL 26TH JULY EVENT.
AFTER 26TH JULY, IF THERE IS NO HIKE, THEN NIFTY WILL BOUNCE BACK AND THERE WILL BE VERY GOOD RISE IN STOCKS FOR A SHORT TERM . NIFTY MAY RISE TO 5880-5940 LEVELS.
STRATEGY: THE BEST STRATEGY COULD BE BUYING CE5500 & CE5600 (JULY) FOR THE RALLY(IF ANY, FROM 26TH JULY) TILL SETTLEMENT DATE 28TH JULY 2011. SETTLEMENT OF THE NIFTY MAY TAKE PLACE ABOVE 5650-5700 ZONE OR HIGHER. THOSE WHO CAN TAKE RISK TO PLAY FOR THE SHORT TERM SHOULD BUY CALLS IN NIFTY. RISK REWARD RATIO IS IN FAVOR OF BULLS THAN BEARS GOING FORWARD. ONLY CRUCIAL LEVEL TO WATCH IS THE LEVEL OF 5525 AND 5585 BREAK ON EITHER SIDE WILL BRING AT LEAST 100-125 POINTS MOVE IN NIFTY, MAY BE UP SIDE TO 5700 OR BREAK DOWN TO 5400. SO KEEP WATCHING 5525 & 5585.
ASTROLOGICALLY: PLANETARY POSITION SUGGEST THAT MARKET SHALL BE IN UPSWING FOR AT LEAST TILL 2ND AUGUST AFTER 25TH JULY.HENCE BUYING OF CALLS IN INDEX AND STOCKS SHALL GIVE PROFITS.THERE ARE 40% CHANCE THAT I MAY GO WRONG & NIFTY MAY NOT GO BEYOND 5600 OR SLIP DOWN BELOW 5500, USE YOUR OWN RISK APPETITE IN TRADE.
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
NOW, MARKET IS IN WAIT & WATCH MODE, AHEAD OF CREDIT POLICY SCHEDULED TO BE HELD ON TUESDAY, 26TH JULY 2011. THOUGH MARKET HAS ANTICIPATED A RISE IN REPO RATE BY 25bps, BANKS HAVE URGED RBI NOT TO HIKE INTEREST RATE SO THAT THE CREDIT GROWTH IS NOT HAMPERED. ANALYST BELIEVE THAT MARKET HAS PRICED IN 25bps INCREASE IN REPO-RATE, WHICH IF NOT INCREASED BY RBI ON 26TH MEET, WILL TRIGGER THE MARKET TO BREAK OUT AT LEAST 300-350 POINTS IN NIFTY, TO TOUCH 5940 OR 6000 LEVELS. HOWEVER ANY HIKE TO THE TUNE OF 25bps SHALL MAKE THE MARKET DANCE WITH THE GLOBAL CUES WITH NEGATIVE BIAS AND ANY HIKE ABOVE 25bps SHALL BE KILLING IN THE MARKET SENTIMENTS. HOWEVER THE CHANCES OF HIKE TO THE TUNE MORE THAN 25bps IS VERY VERY REMOTE. HENCE CREDIT POLICY SEEMS TO BE THE NEAREST TRIGGER IN THE MARKET, BEFORE WHICH MARKET SHALL MOVE IN THE RANGE OF 5525-5585, HAVING SUPPORT AT 5490 & 5440, WHILE RESISTANCE MAY BE THERE AT 5610 & 5655 IF NIFTY BREACHES 5585 LEVELS.
NIFTY MAY OPEN POSITIVE NEAR OR ABOVE 5585, HOWEVER NIFTY MAY TRADE IN A LIMITED RANGE WITH NEGATIVE BIAS. THERE COULD BE PROFIT BOOKING ON EVERY HIGHER LEVEL TILL 26TH JULY EVENT.
AFTER 26TH JULY, IF THERE IS NO HIKE, THEN NIFTY WILL BOUNCE BACK AND THERE WILL BE VERY GOOD RISE IN STOCKS FOR A SHORT TERM . NIFTY MAY RISE TO 5880-5940 LEVELS.
STRATEGY: THE BEST STRATEGY COULD BE BUYING CE5500 & CE5600 (JULY) FOR THE RALLY(IF ANY, FROM 26TH JULY) TILL SETTLEMENT DATE 28TH JULY 2011. SETTLEMENT OF THE NIFTY MAY TAKE PLACE ABOVE 5650-5700 ZONE OR HIGHER. THOSE WHO CAN TAKE RISK TO PLAY FOR THE SHORT TERM SHOULD BUY CALLS IN NIFTY. RISK REWARD RATIO IS IN FAVOR OF BULLS THAN BEARS GOING FORWARD. ONLY CRUCIAL LEVEL TO WATCH IS THE LEVEL OF 5525 AND 5585 BREAK ON EITHER SIDE WILL BRING AT LEAST 100-125 POINTS MOVE IN NIFTY, MAY BE UP SIDE TO 5700 OR BREAK DOWN TO 5400. SO KEEP WATCHING 5525 & 5585.
ASTROLOGICALLY: PLANETARY POSITION SUGGEST THAT MARKET SHALL BE IN UPSWING FOR AT LEAST TILL 2ND AUGUST AFTER 25TH JULY.HENCE BUYING OF CALLS IN INDEX AND STOCKS SHALL GIVE PROFITS.THERE ARE 40% CHANCE THAT I MAY GO WRONG & NIFTY MAY NOT GO BEYOND 5600 OR SLIP DOWN BELOW 5500, USE YOUR OWN RISK APPETITE IN TRADE.
Safe Harbor Statement:
Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.Nothing in this article is, or should be construed as, investment advice.
Disclaimer:
This is neither an offer nor a solicitation to purchase or sell securities. The information and views contained on this blog are believed to be reliable, but no responsibility (or liability) is accepted for errors of fact or opinion. Writers and contributors may be trading in, or have positions in the securities mentioned in their articles. Neither I (Vikas Srivastava) nor any of the contributors accepts any liability arising out of use of the above information/article. Reproduction in whole or in part without written permission is prohibited.
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