LAST WEEK, INDIAN STOCK MARKETS, FELL ON THE OUTCOME OF MORE THAN EXPECTED RATE HIKE BY RBI, ON ITS MONETARY POLICY REVIEW ON 26TH JULY 2011. INDIA'S FOOD INFLATION DECREASED FURTHER TO 7.33% IN THE WEEK ENDED ON JULY 16TH, 2011 AGAINST THE 7.58% THE PREVIOUS WEEK, MAINLY ON ACCOUNT OF HIGHER BASE OF LAST YEAR. ON CUMULATIVE BASIS RAINFALL WAS 4% BELOW NORMAL IN THE WEEK ENDED ON JULY 27TH.
NOW GLOBAL CUES WILL BE THE KEY TO THE INDIAN MARKETS THIS WEEK. DEVELOPMENT OVER THE RAISING OF THE U.S BORROWING LIMIT WOULD GIVE DIRECTION TO THE MARKET. ALTHOUGH ANALYSTS STILL THINK THAT THE U.S GOVERNMENT IS UNLIKELY TO DEFAULT ON ITS DEBT, BUT IF IT DID, THE IMPLICATIONS WOULD BE HUGE. EVEN IF THE POLITICIANS FINALLY GET THEIR ACT TOGATHER AND AGREE A DEFICIT REDUCTION PACKAGE, THE RESULTING SPENDING CUTS MAY NOT BE LARGE TO APPEASE THE CREDIT RATING AGENCIES. HOWEVER, THE FALLOUT SHOULD BE SMALLER THAN THE MUCH MORE DANGEROUS THREAT OF AN ACTUAL DEBT DEFAULT. ON THE DOMESTIC FRONT, Q1 CORPORATE EARNINGS WILL CONTINUE TO REMAIN IN FOCUS. MONTHLY DATA OF AUTO, CEMENT & OTHER COMMODITIES FOR JULY 2011 AND ALSO EX-IM & PMI DATA ARE EXPECTED TO BE ANNOUNCED DURING THE NEXT WEEK, WILL GIVE SOME DIRECTION. MARKETS WILL CLOSELY MONITOR THE PROGRESS OF MONSOON. ITC, ENIGINEERS INDIA, ALLAHABAD BANK WITH MEDIUM TO SHORT TERM PERSPECTIVE. NIFTY RANGE SHOULD BE 5450-5650 UNDER NORMA CIRCUMSTANCES , BARRING THE EXTERNAL SHOCKS DUE TO THE U.S DEBT CRISIS. AVOID BUYING IN THE MINING SCAM TAINTED COMPANIES LIKE ADANI, JSW STEEL, SESA GOA, NMDC ETC.
NOW IN TERMS OF NIFTY THE TREND DECIDING LEVEL IS 5500.
IF NIFTY SHOW STRENGTH ABOVE 5500 LEVELS THEN WE COULD SEE RALLY TO 5550-5600-5650-5700 LEVELS.(CHANCES ARE LESS FOR NOW)
IF NIFTY SHOW WEAKNESS AND DOESN'T SUSTAINS ABOVE 5500 LEVELS THE THERE COULD BE PROFIT BOOKING TILL 5450-5400-5350-5300.
TRADING STRATEGY FOR THE SHORT TERM TRADERS(WEEKLY): WE SUGGEST BUYING PUT OPTION OF THE STRIKE PRICE PE5500 & PE5600, KEEP THE STOP-LOSS OF 5570 TO ALL PUT OPTIONS AND BOOK OUT AROUND THE LEVEL OF 5420-5380.KEEP EYE ON GLOBAL MARKETS IF THE NIFTY TRADES BELOW 5350 THEN NIFTY COULD TEST 5200 ALSO, IN SUCH CASE BUY PE5300, ELSE IF NIFTY REVERSES ABOVE 5500 THEN BUY CE5500 & CE5600 TO BOOK PROFIT AROUND 5700-5750.
IN FUTURE & OPTIONS:
1. ITC FUTURE (210.05): KEEP STOP-LOSS OF 207.50 AND BUY FOR THE TARGET OF 215-220+++.
2.JINDAL SAW FUTURE(154):KEEP STOP-LOSS OF 145.80 AND BUY ON DIPS AROUND 150-152 FOR THE TARGET OF 160+++.
NO DELIVERY BASED BUYING IS SUGGESTED THIS WEEK.
ASTROLOGICALLY: MOON WILL BE TRANSITING THROUGH LEO, VIRGO & LIBRA SIGNS THIS WEEK. MARS PROGRESSING IN GEMINI WILL MAKE THE MARKET MUCH VOLATILE AND UNCERTAIN, AS THE LORD OF GEMINI WILL BE RETRO FROM 3RD AUGUST, IT WILL REVERSE THE CURRENT TREND OF MARS' INJUNCTION FROM 3RD. HENCE IF THE MARKET REMAINS WEAK ON 1st & 2nd, 3rd & 4th AUGUST 2011 THEN THERE WILL BE REVERSAL FROM 5th AUGUST, HOWEVER THE MOVE WILL BE VERY DECEPTIVE AS THE LORD OF LEO, WHERE MERCURY IS POSTED IS IN 12TH TO THE MERCURY ALONG WITH VENUS, WHICH SHOWS LOSSES TO TRADERS & SPECULATORS. HENCE BEST IS TO STAY AWAY FROM THE MARKETS. MERCURY RETRO WILL BE NOT A GOOD TIME TO TRADE WITH i.e., BETWEEN 3rd AUG TO 27th AUG WILL BE PERIOD TO STAY OUT OF THE MARKET AS THERE WILL BE ONE DAY UP AND ONE DAY DOWN AND VERY CONFUSING MARKET. THE RANGE FOR THE NIFTY DURING MERCURY RETRO PERIOD WILL BE 5300-5700.
THERE WILL BE WEAK STARTING OF THE WEEK BUT RECOVERY FROM 5TH AUGUST.
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 GLOBAL CUES WILL BE THE KEY TO THE INDIAN MARKETS THIS WEEK. DEVELOPMENT OVER THE RAISING OF THE U.S BORROWING LIMIT WOULD GIVE DIRECTION TO THE MARKET. ALTHOUGH ANALYSTS STILL THINK THAT THE U.S GOVERNMENT IS UNLIKELY TO DEFAULT ON ITS DEBT, BUT IF IT DID, THE IMPLICATIONS WOULD BE HUGE. EVEN IF THE POLITICIANS FINALLY GET THEIR ACT TOGATHER AND AGREE A DEFICIT REDUCTION PACKAGE, THE RESULTING SPENDING CUTS MAY NOT BE LARGE TO APPEASE THE CREDIT RATING AGENCIES. HOWEVER, THE FALLOUT SHOULD BE SMALLER THAN THE MUCH MORE DANGEROUS THREAT OF AN ACTUAL DEBT DEFAULT. ON THE DOMESTIC FRONT, Q1 CORPORATE EARNINGS WILL CONTINUE TO REMAIN IN FOCUS. MONTHLY DATA OF AUTO, CEMENT & OTHER COMMODITIES FOR JULY 2011 AND ALSO EX-IM & PMI DATA ARE EXPECTED TO BE ANNOUNCED DURING THE NEXT WEEK, WILL GIVE SOME DIRECTION. MARKETS WILL CLOSELY MONITOR THE PROGRESS OF MONSOON. ITC, ENIGINEERS INDIA, ALLAHABAD BANK WITH MEDIUM TO SHORT TERM PERSPECTIVE. NIFTY RANGE SHOULD BE 5450-5650 UNDER NORMA CIRCUMSTANCES , BARRING THE EXTERNAL SHOCKS DUE TO THE U.S DEBT CRISIS. AVOID BUYING IN THE MINING SCAM TAINTED COMPANIES LIKE ADANI, JSW STEEL, SESA GOA, NMDC ETC.
NOW IN TERMS OF NIFTY THE TREND DECIDING LEVEL IS 5500.
IF NIFTY SHOW STRENGTH ABOVE 5500 LEVELS THEN WE COULD SEE RALLY TO 5550-5600-5650-5700 LEVELS.(CHANCES ARE LESS FOR NOW)
IF NIFTY SHOW WEAKNESS AND DOESN'T SUSTAINS ABOVE 5500 LEVELS THE THERE COULD BE PROFIT BOOKING TILL 5450-5400-5350-5300.
TRADING STRATEGY FOR THE SHORT TERM TRADERS(WEEKLY): WE SUGGEST BUYING PUT OPTION OF THE STRIKE PRICE PE5500 & PE5600, KEEP THE STOP-LOSS OF 5570 TO ALL PUT OPTIONS AND BOOK OUT AROUND THE LEVEL OF 5420-5380.KEEP EYE ON GLOBAL MARKETS IF THE NIFTY TRADES BELOW 5350 THEN NIFTY COULD TEST 5200 ALSO, IN SUCH CASE BUY PE5300, ELSE IF NIFTY REVERSES ABOVE 5500 THEN BUY CE5500 & CE5600 TO BOOK PROFIT AROUND 5700-5750.
IN FUTURE & OPTIONS:
1. ITC FUTURE (210.05): KEEP STOP-LOSS OF 207.50 AND BUY FOR THE TARGET OF 215-220+++.
2.JINDAL SAW FUTURE(154):KEEP STOP-LOSS OF 145.80 AND BUY ON DIPS AROUND 150-152 FOR THE TARGET OF 160+++.
NO DELIVERY BASED BUYING IS SUGGESTED THIS WEEK.
ASTROLOGICALLY: MOON WILL BE TRANSITING THROUGH LEO, VIRGO & LIBRA SIGNS THIS WEEK. MARS PROGRESSING IN GEMINI WILL MAKE THE MARKET MUCH VOLATILE AND UNCERTAIN, AS THE LORD OF GEMINI WILL BE RETRO FROM 3RD AUGUST, IT WILL REVERSE THE CURRENT TREND OF MARS' INJUNCTION FROM 3RD. HENCE IF THE MARKET REMAINS WEAK ON 1st & 2nd, 3rd & 4th AUGUST 2011 THEN THERE WILL BE REVERSAL FROM 5th AUGUST, HOWEVER THE MOVE WILL BE VERY DECEPTIVE AS THE LORD OF LEO, WHERE MERCURY IS POSTED IS IN 12TH TO THE MERCURY ALONG WITH VENUS, WHICH SHOWS LOSSES TO TRADERS & SPECULATORS. HENCE BEST IS TO STAY AWAY FROM THE MARKETS. MERCURY RETRO WILL BE NOT A GOOD TIME TO TRADE WITH i.e., BETWEEN 3rd AUG TO 27th AUG WILL BE PERIOD TO STAY OUT OF THE MARKET AS THERE WILL BE ONE DAY UP AND ONE DAY DOWN AND VERY CONFUSING MARKET. THE RANGE FOR THE NIFTY DURING MERCURY RETRO PERIOD WILL BE 5300-5700.
THERE WILL BE WEAK STARTING OF THE WEEK BUT RECOVERY FROM 5TH AUGUST.
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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