INDIAN STOCK MARKET OPENED STRONG ON CUES FROM ASIAN MARKETS HOWEVER ALL THE GAINS WERE GIVEN UP AND MARKET TURNED A BIT NEGATIVE WHEN NEGATIVE CUES STARTED COMING FROM EUROPE AND WEAK U.S FUTURES ON FEARS THAT GREEK GOVERNMENT MAY DEFAULT ON ITS DEBT AND FEARS OF POSSIBLE DOWNGRADES OF FRENCH BANKS.
NIFTY SHUT SHOP AT 4940.95, DOWN BY 5.85 POINTS AND SENSEX CLOSED AT 16467.44 DOWN BY 34.30 POINTS. MARKET BREADTH WAS MIX AND BOTH MID-CAP & SMALL-CAP INDEX CLOSED ON FLAT NOTE.
INDIAN MARKET IS LIKELY TO REMAIN VOLATILE AS THERE ARE MANY DATA AND RBI's MID-QUARTER POLICY REVIEW ARE LINED UP. INFLATION DATA, WHICH HAS TO COME TODAY SHALL BE THE LAST MAJOR GUIDE FACTOR TO RBI FOR ITS POLICY ANNOUNCEMENT ON 16TH SEPTEMBER 2011. ALSO MARKET WILL KEENLY WATCH THE ADVANCE TAX NUMBERS OF THE CORPORATES WHICH ARE DUE FROM SEPTEMBER 15TH, 2011. ALSO GLOBAL CUES SHALL GUIDE THE MARKETS AS USUAL. HENCE THE COMING 2-3 TRADING SESSIONS WILL DECIDE THE FATE OF THE INDIAN STOCK MARKET.
THERE ARE EXPECTATIONS OF 25bps HIKE IN REPO-RATE AND/OR EASING OF SLR AND/OR CRR BY RBI ON 16TH SEPTEMBER. ANY THING MORE THAN THE EXPECTED HIKE SHALL RUIN THE MARKET SENTIMENT AND PLAY HAVOC ON INDICES. CONTRARY TO THIS THERE ARE SOME VOICES AND EXPECTATIONS OF INDUSTRY THAT RBI MAY PAUSE THIS TIME, SHALL DEFINITELY BRING THE CHEER IN THE MARKET. HOWEVER THE CHANCES ARE MORE THAT RBI MAY HIKE THE RATE AT LEAST 25bps. INFLATION FIGURE SHALL GUIDE MUCH IN THIS RESPECT TODAY.
NIFTY IS GETTING STRONG SUPPORT NEAR 4900. IF NIFTY BREACHES 4900 ON THE DOWN SIDE, THE SHORT TERM TREND SHALL BECOME DOWN AND NIFTY MAY TEST 4800-4770 ON THE OTHER HAND IF NIFTY MOVES AND SUSTAINS ABOVE 5055 THEN IT COULD MOVE TO 5170. OPTION DATA SHOW THAT NOW NIFTY MAY NOT BE ABLE TO MOVE ABOVE 5200 IN THE NEAR TERM. HENCE ALL LONG POSITIONS, IF ANY SHOULD BE KEPT ONLY WITH A STRICT STOP-LOSS(CLOSING BASIS) OF 4900. IF NIFTY BREACHES AND FALLS BELOW 4900 EXIT OF ALL LONG POSITIONS AND SIT ON CASH AS THE SHORT TERM TREND WOULD BECOME NEGATIVE.
FOR TODAY: NIFTY HAS SUPPORT AT 4900 AND RESISTANCE AT 4985. BREAK BELOW 4900 MAY PULL NIFTY TO 4860 & 4830. IF NIFTY MOVES ABOVE 4985 THEN 5025 & 5055 WOULD BECOME THE TARGET.
STRATEGY FOR TODAY:
DON'T TRADE IN THE RANGE OF 4900-4985.
BUY CE5000 & CE5100 IF NIFTY MOVES ABOVE 4985.
BUY PE4900 & PE4800 IF NIFTY MOVES BELOW 4900.
STOCKS/FUTURES/OPTIONS:
1. BATA FUTURE(668.10): BUY ON DIPS NEAR 660-650 KEEPING STOP-LOSS OF 640 FOR THE TARGET OF 690-720.
2. SBI FUTURE(1834.95): BUY ON DIPS NEAR 1830-1800 KEEPING STOP-LOSS OF 1770 FOR THE TARGET OF 1880-1920-1960-2000.
3. SESA GOA(228.30): BUY AT CMP KEEPING STOP-LOSS OF 224.20 FOR THE TARGET OF 232-236+++
ASTROLOGICALLY: IT HAS BEEN MENTIONED IN THE PAST THAT MARKET PEAK ON 8TH/9TH SEPTEMBER COULD BE THE TOP FOR SEPTEMBER MONTH AND NOW IT SEEMS THAT NIFTY MAY NOT MOVE ABOVE 5170 IN NEAR TERM. TODAY MARKETS WILL TRADE IN A RANGE WITH NEGATIVE BIAS. SHORTING COULD BE DONE ON HIGHER LEVELS. 16TH COULD BE VERY VERY POOR FOR THE MARKET. HENCE NO HUGE BUYING AND STRICT STOP-LOSS OF 4900 FOR ALL LONGS SUGGESTED. BUY PE 5000(SEPT) & PE5000(OCT) FOR HUGE HUGE GAINS IN OCT. TARGETS COULD NOT BE EXPRESSED.
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.
NIFTY SHUT SHOP AT 4940.95, DOWN BY 5.85 POINTS AND SENSEX CLOSED AT 16467.44 DOWN BY 34.30 POINTS. MARKET BREADTH WAS MIX AND BOTH MID-CAP & SMALL-CAP INDEX CLOSED ON FLAT NOTE.
INDIAN MARKET IS LIKELY TO REMAIN VOLATILE AS THERE ARE MANY DATA AND RBI's MID-QUARTER POLICY REVIEW ARE LINED UP. INFLATION DATA, WHICH HAS TO COME TODAY SHALL BE THE LAST MAJOR GUIDE FACTOR TO RBI FOR ITS POLICY ANNOUNCEMENT ON 16TH SEPTEMBER 2011. ALSO MARKET WILL KEENLY WATCH THE ADVANCE TAX NUMBERS OF THE CORPORATES WHICH ARE DUE FROM SEPTEMBER 15TH, 2011. ALSO GLOBAL CUES SHALL GUIDE THE MARKETS AS USUAL. HENCE THE COMING 2-3 TRADING SESSIONS WILL DECIDE THE FATE OF THE INDIAN STOCK MARKET.
THERE ARE EXPECTATIONS OF 25bps HIKE IN REPO-RATE AND/OR EASING OF SLR AND/OR CRR BY RBI ON 16TH SEPTEMBER. ANY THING MORE THAN THE EXPECTED HIKE SHALL RUIN THE MARKET SENTIMENT AND PLAY HAVOC ON INDICES. CONTRARY TO THIS THERE ARE SOME VOICES AND EXPECTATIONS OF INDUSTRY THAT RBI MAY PAUSE THIS TIME, SHALL DEFINITELY BRING THE CHEER IN THE MARKET. HOWEVER THE CHANCES ARE MORE THAT RBI MAY HIKE THE RATE AT LEAST 25bps. INFLATION FIGURE SHALL GUIDE MUCH IN THIS RESPECT TODAY.
NIFTY IS GETTING STRONG SUPPORT NEAR 4900. IF NIFTY BREACHES 4900 ON THE DOWN SIDE, THE SHORT TERM TREND SHALL BECOME DOWN AND NIFTY MAY TEST 4800-4770 ON THE OTHER HAND IF NIFTY MOVES AND SUSTAINS ABOVE 5055 THEN IT COULD MOVE TO 5170. OPTION DATA SHOW THAT NOW NIFTY MAY NOT BE ABLE TO MOVE ABOVE 5200 IN THE NEAR TERM. HENCE ALL LONG POSITIONS, IF ANY SHOULD BE KEPT ONLY WITH A STRICT STOP-LOSS(CLOSING BASIS) OF 4900. IF NIFTY BREACHES AND FALLS BELOW 4900 EXIT OF ALL LONG POSITIONS AND SIT ON CASH AS THE SHORT TERM TREND WOULD BECOME NEGATIVE.
FOR TODAY: NIFTY HAS SUPPORT AT 4900 AND RESISTANCE AT 4985. BREAK BELOW 4900 MAY PULL NIFTY TO 4860 & 4830. IF NIFTY MOVES ABOVE 4985 THEN 5025 & 5055 WOULD BECOME THE TARGET.
STRATEGY FOR TODAY:
DON'T TRADE IN THE RANGE OF 4900-4985.
BUY CE5000 & CE5100 IF NIFTY MOVES ABOVE 4985.
BUY PE4900 & PE4800 IF NIFTY MOVES BELOW 4900.
STOCKS/FUTURES/OPTIONS:
1. BATA FUTURE(668.10): BUY ON DIPS NEAR 660-650 KEEPING STOP-LOSS OF 640 FOR THE TARGET OF 690-720.
2. SBI FUTURE(1834.95): BUY ON DIPS NEAR 1830-1800 KEEPING STOP-LOSS OF 1770 FOR THE TARGET OF 1880-1920-1960-2000.
3. SESA GOA(228.30): BUY AT CMP KEEPING STOP-LOSS OF 224.20 FOR THE TARGET OF 232-236+++
ASTROLOGICALLY: IT HAS BEEN MENTIONED IN THE PAST THAT MARKET PEAK ON 8TH/9TH SEPTEMBER COULD BE THE TOP FOR SEPTEMBER MONTH AND NOW IT SEEMS THAT NIFTY MAY NOT MOVE ABOVE 5170 IN NEAR TERM. TODAY MARKETS WILL TRADE IN A RANGE WITH NEGATIVE BIAS. SHORTING COULD BE DONE ON HIGHER LEVELS. 16TH COULD BE VERY VERY POOR FOR THE MARKET. HENCE NO HUGE BUYING AND STRICT STOP-LOSS OF 4900 FOR ALL LONGS SUGGESTED. BUY PE 5000(SEPT) & PE5000(OCT) FOR HUGE HUGE GAINS IN OCT. TARGETS COULD NOT BE EXPRESSED.
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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