ON THE POSITIVE GLOBAL CUES, INDIAN MARKET RESONATED TO WITNESS A SHARP BOUNCE BACK RALLY ON MONDAY & TUESDAY FROM THE LOWS OF FRIDAY. NIFTY CLOSED AT 5001.00 & SENSEX AT 16676.75. MARKET BREADTH WAS POSITIVE AND BOTH MID-CAP & SMALL-CAP INDEX WERE UP BY MORE THAN A PERCENT. THE DOMESTIC DATAs RELEASED IN THE LAST TWO DAYS SHOW THAT INDIA'S GDP GREW BY 7.7% IN Q1(APRIL-JUNE) OF FY2011-12 FROM A YEAR EARLIER, AFTER EXPANDING BY 7.8% YoY IN Q4(JANUARY-MARCH) OF FY 2010-11. INDIA'S EXPORTS INCREASED BY 81.8% (YoY) TO $29.34 BILLION, WHERE AS IMPORTS INCREASED BY 51.5% (YoY) TO $ 40.43 BILLION. LASTLY AN IMPORTANT DATA SHOW THAT INDIA'S FOOD INFLATION ACCELERATED TO 10.05% IN THE WEEK ENDED AUGUST 20, 2011 FROM AN YEAR EARLIER AFTER INCREASING BY 9.8% IN ITS PREVIOUS WEEK.
GOING FORWARD, THERE IS NO NEAR TERM DOMESTIC TRIGGER TO THE MARKET ONLY GLOBAL CUES SHALL BE THE KEY TO THE DIRECTION. SO FAR SHORT COVERING IS SEEN IN THE MARKET. FIIs HAVE BEEN SELLING & SELLING AND MIGHT CONTINUE TO SELL ON EVERY HIGHER LEVELS. DOMESTIC INSTITUTIONAL VALUE BUYING HAS BEEN SEEN AT THE LOWER LEVELS( NEAR 4700). THE BROAD RANGE OF THE MARKET NOW SHALL BE 4650-5200.
AFTER MAKING A LOW OF 4720 ON FRIDAY, NIFTY HAS GIVEN A PULL BACK RALLY OF 6.28% IN TWO DAYS, MONDAY & TUESDAY. NOW NIFTY HAS STRONG RESISTANCE AT 5090. IF NIFTY SUSTAINS ABOVE 5090 THEN NIFTY COULD MOVE TO 5200 LEVELS IN EXTREME SHORT TERM. HOWEVER IN THE DOWN SIDE IF NIFTY FAILS TO HOLD 4800 WOULD INDICATE THE END OF THE CURRENT CORRECTIVE RALLY AND IN THAT CASE NIFTY WOULD FALL TO 4700-4650 LEVELS.
FOR TODAY: NIFTY HAS SUPPORT AT 4970 AND RESISTANCE AT 5030. IF NIFTY BREAKS 4970, IT MAY GO DOWN FURTHER TO 4940 & 4900 ALSO, ON THE OTHER HAND IF NIFTY SUSTAINS ABOVE 5030 , THE LEVEL OF 5055-5090 WOULD BECOME THE NEXT TARGET.
WHAT ONE CAN DO NOW?
1. STRATEGY No.1:THE STRATEGY SHOULD BE TO BUY PUTS IF NIFTY MOVES BELOW 4970(PE 5000 & PE4900)[KEEP 5030 AS STOP-LOSS] & BUY CALL IF NIFTY MOVES/SUSTAINS ABOVE 5030(CE5000 & CE5100)[KEEP 4970 AS STOP-LOSS].
OR
2. STRATEGY No.2:AS SUGGESTED EARLIER KEEP ON BUYING PUTS(PE 5000 & PE4900) KEEPING 5100 AS STOP-LOSS(CLOSING BASIS) AND HOLD ALL PUTS TO BOOK PROFITS WHEN NIFTY COMES BELOW 4700 AT ANY POINT OF TIME IN SEPTEMBER.
FOLLOWING STOCKS COULD BE SEEN FOR INTRA-DAY ONLY:
1. INFY(2342.95): BUY FOR THE TARGET OF 2375-2395-2410++ KEEPING STOP-LOSS AT 2310
2. ESSAR OIL(88.40): BUY FOR THE TARGET OF 90.50-93.50++ KEEPING THE STOP-LOSS AT 85.80
ASTROLOGICALLY: AS SAID EARLIER FOR THIS WEEK THAT MONDAY & TUESDAY COULD SEE SHARP BOUNCE BACK(AFTER PREVIOUS WEEK FRIDAY'S FALL), WE COULD SEE FALL IN THE MARKET TODAY FOR NEXT 2-3 TRADING SESSIONS. MARKET MAY OPEN IN GREEN BUT PLANETARY POSITION SUGGEST THAT TODAY MARKET SHALL WITNESS WEAKNESS AND SHARP CUTS. HENCE ONE COULD LOOK TO GO WITH THE 2ND STRATEGY IN NIFTY TODAY. ONE CAN BUY PUTS(PE5000 & PE4900) FOR GAINS AT THE END OF THE DAY OR ANY TIME BY NEXT 2-3 TRADING SESSIONS.
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.
GOING FORWARD, THERE IS NO NEAR TERM DOMESTIC TRIGGER TO THE MARKET ONLY GLOBAL CUES SHALL BE THE KEY TO THE DIRECTION. SO FAR SHORT COVERING IS SEEN IN THE MARKET. FIIs HAVE BEEN SELLING & SELLING AND MIGHT CONTINUE TO SELL ON EVERY HIGHER LEVELS. DOMESTIC INSTITUTIONAL VALUE BUYING HAS BEEN SEEN AT THE LOWER LEVELS( NEAR 4700). THE BROAD RANGE OF THE MARKET NOW SHALL BE 4650-5200.
AFTER MAKING A LOW OF 4720 ON FRIDAY, NIFTY HAS GIVEN A PULL BACK RALLY OF 6.28% IN TWO DAYS, MONDAY & TUESDAY. NOW NIFTY HAS STRONG RESISTANCE AT 5090. IF NIFTY SUSTAINS ABOVE 5090 THEN NIFTY COULD MOVE TO 5200 LEVELS IN EXTREME SHORT TERM. HOWEVER IN THE DOWN SIDE IF NIFTY FAILS TO HOLD 4800 WOULD INDICATE THE END OF THE CURRENT CORRECTIVE RALLY AND IN THAT CASE NIFTY WOULD FALL TO 4700-4650 LEVELS.
FOR TODAY: NIFTY HAS SUPPORT AT 4970 AND RESISTANCE AT 5030. IF NIFTY BREAKS 4970, IT MAY GO DOWN FURTHER TO 4940 & 4900 ALSO, ON THE OTHER HAND IF NIFTY SUSTAINS ABOVE 5030 , THE LEVEL OF 5055-5090 WOULD BECOME THE NEXT TARGET.
WHAT ONE CAN DO NOW?
1. STRATEGY No.1:THE STRATEGY SHOULD BE TO BUY PUTS IF NIFTY MOVES BELOW 4970(PE 5000 & PE4900)[KEEP 5030 AS STOP-LOSS] & BUY CALL IF NIFTY MOVES/SUSTAINS ABOVE 5030(CE5000 & CE5100)[KEEP 4970 AS STOP-LOSS].
OR
2. STRATEGY No.2:AS SUGGESTED EARLIER KEEP ON BUYING PUTS(PE 5000 & PE4900) KEEPING 5100 AS STOP-LOSS(CLOSING BASIS) AND HOLD ALL PUTS TO BOOK PROFITS WHEN NIFTY COMES BELOW 4700 AT ANY POINT OF TIME IN SEPTEMBER.
FOLLOWING STOCKS COULD BE SEEN FOR INTRA-DAY ONLY:
1. INFY(2342.95): BUY FOR THE TARGET OF 2375-2395-2410++ KEEPING STOP-LOSS AT 2310
2. ESSAR OIL(88.40): BUY FOR THE TARGET OF 90.50-93.50++ KEEPING THE STOP-LOSS AT 85.80
ASTROLOGICALLY: AS SAID EARLIER FOR THIS WEEK THAT MONDAY & TUESDAY COULD SEE SHARP BOUNCE BACK(AFTER PREVIOUS WEEK FRIDAY'S FALL), WE COULD SEE FALL IN THE MARKET TODAY FOR NEXT 2-3 TRADING SESSIONS. MARKET MAY OPEN IN GREEN BUT PLANETARY POSITION SUGGEST THAT TODAY MARKET SHALL WITNESS WEAKNESS AND SHARP CUTS. HENCE ONE COULD LOOK TO GO WITH THE 2ND STRATEGY IN NIFTY TODAY. ONE CAN BUY PUTS(PE5000 & PE4900) FOR GAINS AT THE END OF THE DAY OR ANY TIME BY NEXT 2-3 TRADING SESSIONS.
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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