AS EXPECTED NIFTY CONTINUED ITS UPWARD MARCH ON THE THIRD CONSECUTIVE DAY. MARKET WAS VOLATILE IN A RANGE MOVING IN BOTH POSITIVE AND NEGATIVE TERRITORY, BUT GAINED STRENGTH IN THE LAST HOUR. GLOBAL CUES ALSO PLAYED POSITIVE ROLE. NIFTY ENDED AT 5153.25, UP 28.60 POINTS & SENSEX ENDED AT 17165.54, UP 100.54 POINTS. MARKET BREADTH WAS POSITIVE.BOTH MID-CAP & SMALL-CAP INDEX WERE MARGINALLY UP. DOMESTICALLY FOOD INFLATION FELL DOWN TO 9.55%FOR THE WEEK ENDED AUGUST 27TH, 2011 AGAINST 10.05% IN THE PREVIOUS WEEK.
LEAVING OUT FMCG, METAL & POWER SECTOR INDICES, ALL OTHER INDICES WERE UP.
GOING FORWARD, MAIN CUES SHALL COME GLOBALLY. THE FED CHAIRMAN, BERNANKE IS HOPEFUL OF GETTING OUT OF WOODS AND INTRODUCE THE TOOLS WHICH SHALL BE APPROPRIATE. BERNANKE ALSO SAID THAT FED COULD INTRODUCE QE3(AS ONE OF THE TOOLS) IN ITS SEPTEMBER MEET. US STOCKS SLID AND COMMODITIES FELL, WHILE TREASURIES AND DOLLAR ROSE, AS FEDERAL RESERVE CHAIRMAN BEN S. BERNANKE DISAPPOINTED INVESTORS BY NOT DETAILING NEW PLANS TO BOOST GROWTH IN THE WORLD'S LARGEST ECONOMY. AT THE TIME OF UPADATING THE BLOG DOW WAS 11295.90(-118.97), NASDAQ 2529.14(-19.80) & S&P 1185.89(-12.73) ACCORDING TO BILL GROSS , FOUNDER OF PIMCO, PRESIDENT BARAK OBAMA'S PLAN TO STIMULATE ECONOMY WITH MORE THAN $300 BILLION IN TAX CUTS AND SPENDING IS INADEQUATE. HE SAID" I THINK MARKETS WILL BE DISAPPOINTED EVENTUALLY AND POSSIBLY BY TOMORROW MORNING IF WE SEE $300 BILLION OR LESS". AT THE TIME OF UPDATING THE BLOG, US PRESIDENT HAS NOT DELIVERED HIS SPEECH. THIS MIGHT BE THE EVENT TO WATCH OUT AND HOW THE GLOBAL MARKETS REACTS.
INTERESTINGLY IF QE3 IS USED AS ONE OF THE TOOLS BY FED, THEN THIS WOULD NOT BE GOOD FOR INDIA, GLOBAL COMMODITIES PRICES WILL RISE AND LEAD TO MORE HIGHER INFLATION TO PERSIST FOR LONGER PERIOD OF TIME. WHICH WOULD BE HARD AND SEVERE POSITION FOR RBI TO BRING DOWN INTEREST RATE, CONSEQUENTLY AFFECTING THE CORPORATE MARGINS, BANKS NIMs, INDIA'S GDP. HENCE ITS VERY CRUCIAL TO WATCH THE DEVELOPMENTS IN THE MONTH OF SEPTEMBER.
AFTER MAKING A LOW OF 4720 ON 26TH AUGUST, 2011 NIFTY HAS GIVEN A PULL BACK RALLY OF ALMOST 9.50% IN A TIME SPAN OF JUST SEVEN TRADING SESSION. THE CURRENT RALLY COULD EXTEND TO 5230. IF NIFTY IS ABLE TO SUSTAIN 5230-5250, AN UPWARD RALLY MIGHT CARRY IT TO 5320 AND THEN TO 5400 IN THE SHORT TERM. HOWEVER IT IS IMPORTANT TO NOTE THAT SOME LEADING INDICATORS (STOCHASTIC & RSI) ARE GIVING OVERBOUGHT SIGNAL OF NIFTY. SO SOME CORRECTION TO 5020 CANNOT BE RULED OUT IN THE EXTREME SHORT TERM.
FOR TODAY: NIFTY HAS SUPPORT AT 5120 & RESISTANCE AT 5170. IF NIFTY BREAKS 5120, IT MAY FURTHER GO DOWN TO 5090 & 5050. HOWEVER IF NIFTY SUSTAINS 5170 THEN THE LEVEL OF 5210-5230-5250 WOULD BECOME THE NEXT TARGET.
STRATEGY FOR THE DAY:
NO TRADING RANGE IS 5120-5170.
BUY CE5100 & CE5200 IF NIFTY BREAKS & TRADE ABOVE 5170 KEEPING THE STOP-LOSS OF 5120.
BUY PE 5100 & PE5000 IF NIFTY BREAKS & TRADE BELOW 5120 KEEPING THE STOP-LOSS OF 5170.
STOCKS/FUTURES/OPTIONS:
1. DISH TV FUTURE(79.60): SHORT FOR THE TARGET OF 77-75-73 KEEPING A CLOSING STOP-LOSS OF 82.50. ALTERNATIVELY ONE CAN BUY PE80.
2. TCS FUTURE(1034.00): SHORT FOR THE TARGET OF 1020-1000 KEEPING A CLOSING STOP-LOSS OF 1050. ALTERNATIVELY ONE CAN BUY PE1040.
3. BANK NIFTY(9926.90): SHORT BETWEEN 9990-10050 KEEPING A CLOSING STOP-LOSS OF 10140 FOR THE TARGET OF 9950-9870-9800-9770.
ASTROLOGICALLY: AS SAID EARLIER NIFTY MAY BE BULLISH TODAY ALSO, SUBJECT TO GLOBAL CUES, HOWEVER THE END OF THE DAY WILL BE WEAK. PLANETARY POSITION SUGGEST THAT THE RALLY STARTED FROM 26TH AUGUST MIGHT HALT FROM 9TH SEPTEMBER FOR SOME TIME. HENCE BUYING OF PUT OPTIONS TODAY, AT THE TIME WHEN NIFTY REACHES THE HIGHEST POINT OF RESISTANCES(5170-5230-5250) SHALL BE A PROFITABLE PREPOSITION FOR THE DAY. ONE CAN GAIN SOME POINTS AT THE END OF THE DAY.
ASTROLOGICALLY, NEXT WEEK IS NOT GOOD. MARS TRANSITING TO CANCER AFTER THE CLOSE OF THE INDIAN MARKET, AT 3.46PM ON 9TH SEPTEMBER IS NOT GOOD AT ALL TILL 30TH OCTOBER 2011. THIS WILL BE HIGHLY DECEPTIVE MOVE. HENCE BE CAUTIOUS. NIFTY COULD DECLINE BELOW THE RECENT AUGUST LOWS ALSO.
IMPORTANT NOTE:THERE IS 30% CHANCE THAT I MAY GO WRONG IN THE ABOVE ASTROLOGICAL ANALYSIS. KINDLY TAKE YOUR OWN JUDGEMENT AND ADVICE FROM YOUR FINANCIAL & ASTROLOGICAL CONSULTANT OR ADVISER BEFORE INITIATING ANY 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.
LEAVING OUT FMCG, METAL & POWER SECTOR INDICES, ALL OTHER INDICES WERE UP.
GOING FORWARD, MAIN CUES SHALL COME GLOBALLY. THE FED CHAIRMAN, BERNANKE IS HOPEFUL OF GETTING OUT OF WOODS AND INTRODUCE THE TOOLS WHICH SHALL BE APPROPRIATE. BERNANKE ALSO SAID THAT FED COULD INTRODUCE QE3(AS ONE OF THE TOOLS) IN ITS SEPTEMBER MEET. US STOCKS SLID AND COMMODITIES FELL, WHILE TREASURIES AND DOLLAR ROSE, AS FEDERAL RESERVE CHAIRMAN BEN S. BERNANKE DISAPPOINTED INVESTORS BY NOT DETAILING NEW PLANS TO BOOST GROWTH IN THE WORLD'S LARGEST ECONOMY. AT THE TIME OF UPADATING THE BLOG DOW WAS 11295.90(-118.97), NASDAQ 2529.14(-19.80) & S&P 1185.89(-12.73) ACCORDING TO BILL GROSS , FOUNDER OF PIMCO, PRESIDENT BARAK OBAMA'S PLAN TO STIMULATE ECONOMY WITH MORE THAN $300 BILLION IN TAX CUTS AND SPENDING IS INADEQUATE. HE SAID" I THINK MARKETS WILL BE DISAPPOINTED EVENTUALLY AND POSSIBLY BY TOMORROW MORNING IF WE SEE $300 BILLION OR LESS". AT THE TIME OF UPDATING THE BLOG, US PRESIDENT HAS NOT DELIVERED HIS SPEECH. THIS MIGHT BE THE EVENT TO WATCH OUT AND HOW THE GLOBAL MARKETS REACTS.
INTERESTINGLY IF QE3 IS USED AS ONE OF THE TOOLS BY FED, THEN THIS WOULD NOT BE GOOD FOR INDIA, GLOBAL COMMODITIES PRICES WILL RISE AND LEAD TO MORE HIGHER INFLATION TO PERSIST FOR LONGER PERIOD OF TIME. WHICH WOULD BE HARD AND SEVERE POSITION FOR RBI TO BRING DOWN INTEREST RATE, CONSEQUENTLY AFFECTING THE CORPORATE MARGINS, BANKS NIMs, INDIA'S GDP. HENCE ITS VERY CRUCIAL TO WATCH THE DEVELOPMENTS IN THE MONTH OF SEPTEMBER.
AFTER MAKING A LOW OF 4720 ON 26TH AUGUST, 2011 NIFTY HAS GIVEN A PULL BACK RALLY OF ALMOST 9.50% IN A TIME SPAN OF JUST SEVEN TRADING SESSION. THE CURRENT RALLY COULD EXTEND TO 5230. IF NIFTY IS ABLE TO SUSTAIN 5230-5250, AN UPWARD RALLY MIGHT CARRY IT TO 5320 AND THEN TO 5400 IN THE SHORT TERM. HOWEVER IT IS IMPORTANT TO NOTE THAT SOME LEADING INDICATORS (STOCHASTIC & RSI) ARE GIVING OVERBOUGHT SIGNAL OF NIFTY. SO SOME CORRECTION TO 5020 CANNOT BE RULED OUT IN THE EXTREME SHORT TERM.
FOR TODAY: NIFTY HAS SUPPORT AT 5120 & RESISTANCE AT 5170. IF NIFTY BREAKS 5120, IT MAY FURTHER GO DOWN TO 5090 & 5050. HOWEVER IF NIFTY SUSTAINS 5170 THEN THE LEVEL OF 5210-5230-5250 WOULD BECOME THE NEXT TARGET.
STRATEGY FOR THE DAY:
NO TRADING RANGE IS 5120-5170.
BUY CE5100 & CE5200 IF NIFTY BREAKS & TRADE ABOVE 5170 KEEPING THE STOP-LOSS OF 5120.
BUY PE 5100 & PE5000 IF NIFTY BREAKS & TRADE BELOW 5120 KEEPING THE STOP-LOSS OF 5170.
STOCKS/FUTURES/OPTIONS:
1. DISH TV FUTURE(79.60): SHORT FOR THE TARGET OF 77-75-73 KEEPING A CLOSING STOP-LOSS OF 82.50. ALTERNATIVELY ONE CAN BUY PE80.
2. TCS FUTURE(1034.00): SHORT FOR THE TARGET OF 1020-1000 KEEPING A CLOSING STOP-LOSS OF 1050. ALTERNATIVELY ONE CAN BUY PE1040.
3. BANK NIFTY(9926.90): SHORT BETWEEN 9990-10050 KEEPING A CLOSING STOP-LOSS OF 10140 FOR THE TARGET OF 9950-9870-9800-9770.
ASTROLOGICALLY: AS SAID EARLIER NIFTY MAY BE BULLISH TODAY ALSO, SUBJECT TO GLOBAL CUES, HOWEVER THE END OF THE DAY WILL BE WEAK. PLANETARY POSITION SUGGEST THAT THE RALLY STARTED FROM 26TH AUGUST MIGHT HALT FROM 9TH SEPTEMBER FOR SOME TIME. HENCE BUYING OF PUT OPTIONS TODAY, AT THE TIME WHEN NIFTY REACHES THE HIGHEST POINT OF RESISTANCES(5170-5230-5250) SHALL BE A PROFITABLE PREPOSITION FOR THE DAY. ONE CAN GAIN SOME POINTS AT THE END OF THE DAY.
ASTROLOGICALLY, NEXT WEEK IS NOT GOOD. MARS TRANSITING TO CANCER AFTER THE CLOSE OF THE INDIAN MARKET, AT 3.46PM ON 9TH SEPTEMBER IS NOT GOOD AT ALL TILL 30TH OCTOBER 2011. THIS WILL BE HIGHLY DECEPTIVE MOVE. HENCE BE CAUTIOUS. NIFTY COULD DECLINE BELOW THE RECENT AUGUST LOWS ALSO.
IMPORTANT NOTE:THERE IS 30% CHANCE THAT I MAY GO WRONG IN THE ABOVE ASTROLOGICAL ANALYSIS. KINDLY TAKE YOUR OWN JUDGEMENT AND ADVICE FROM YOUR FINANCIAL & ASTROLOGICAL CONSULTANT OR ADVISER BEFORE INITIATING ANY 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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