THERE WAS SIGNIFICANT UPSIDE IN THE MARKET AFTER THE HOLIDAYS AS IT SCALED UP IN MATCHING THE GLOBAL RALLY, LED BY US AND EUROPEAN MARKETS. HENCE GLOBAL CUES PLAYED IMPORTANT ROLE IN RISE IN MARKETS, ALSO RBI HIKED THE INTEREST RATE BY 25bps IN ITS MONETARY POLICY REVIEW MEET ON 25TH OCTOBER, 2011 MAKING REPO-RATE TO 8.50% AND REVERSE REPO TO 7.5% , WHILE BRINGING GDP FORECAST TO 7.6% FROM 8%, WHILE MAINTAINING INFLATION FORECAST OF 7% BY THE END OF MARCH 2012. RBI INDICATED THIS HIKE COULD BE A LAST RATE HIKE AS IT EXPECTS THE PRICES TO START COOLING FROM DECEMBER. ALSO IT DEREGULATED THE SAVINGS RATE OF BANKS WITH IMMEDIATE EFFECT. ON THE GLOBAL ARENA , EU LEADERS AGREED ON A PLAN TO RESOLVE THE EURO-ZONE FINANCIAL CRISIS.
GOING FORWARD, INDIAN MARKETS MAY TRADE IN A BROAD RANGE WHERE STOCK SPECIFIC ACTION WILL BE SEEN. CORPORATE PERFORMANCE IN THE SECOND QUARTER SHALL BE THE FOCUS OF THE MARKET. GLOBAL CUES, WHERE THE FOMC MEETING ON 1ST & 2ND NOVEMBER, G20 MEETING SCHEDULED ON 3RD AND 4TH NOVEMBER, INDIA'S EXIM DATA FOR SEPTEMBER ON 1ST NOVEMBER, INDIA'S WEEKLY FOOD & FUEL INFLATION FOR THE WEEK ENDED ON OCTOBER 22, SHALL BE THE KEY EVENTS AND CUES TO WATCH FOR. INDEX BASED FRONT LINE STOCKS SHALL BE ON THE MOVEMENT THIS WEEK.
AFTER A LONG CONSOLIDATION IN THE RANGE OF 4700-5200 NIFTY GAVE A STRONG BREAKOUT RALLY LAST WEEK. NOW GOING UPSIDE NIFTY WILL HAVE VERY STRONG RESISTANCE IN THE RANGE OF 5420-5450. IF NIFTY MANAGES TO CLOSE ABOVE 5450 THEN 5600-5650 SHALL BE THE NEXT LEVEL WHERE NIFTY MAY PAUSE TO CONSOLIDATE.
AS NIFTY HAS MADE A GAP BETWEEN 5220 AND 5322, SO THERE IS STRONG POSSIBILITY THAT NIFTY MAY GO DOWN TO 5220 LEVELS TO FILL THE GAP IN THE VERY SHORT TERM. HENCE BOOKING PROFIT AT THE CURRENT LEVEL IS ADVISABLE SO AS TO RE-ENTER AROUND 5220 LEVELS.
FOR THIS WEEK: SUPPORT FOR THE NIFTY LIES AT 5320 AND RESISTANCE AT 5420. IF NIFTY BREAKS 5320 ON THE DOWN SIDE THEN IT MAY GO DOWN TO 5270-5220-5200, ON THE OTHER HAND IF NIFTY SUSTAINS ABOVE 5420, THEN IT MAY INCH UP TO 5450-5540-5600 LEVELS.
STRATEGY FOR THE WEEK:
BUY PE 5400 & PE 5300:IF NIFTY SUSTAINS BELOW 5320 TO BOOK PROFIT AROUND 5270-5220-5200 LEVELS KEEPING STOP-LOSS OF 5450(CLOSING BASIS).
BUY CE5400 & CE5500: IF NIFTY SUSTAINS ABOVE 5450(CLOSING BASIS)TO BOOK PROFIT AROUND 5540-5600 KEEPING STOP-LOSS OF 5320.
NOTE: CHANCES ARE HIGHER THAT NIFTY MAY MOVE DOWN FIRST THAN HIGHER FROM CMP AS NIFTY MAY MOVE DOWN TO FILL THE GAP CREATED LAST WEEK.
ASTROLOGICALLY: IN OCTOBER I HAD ANALYSED AND PREDICTED FOR A CORRECTION AND FALL DUE TO INTENSE PLANETARY CONFIGURATION TAKING PLACE IN THE LAST 10 DAYS OF OCTOBER. HOWEVER AGAINST MY VIEW MARKET RAN FAST ON THE UPSIDE. AS SAID EARLIER, I MAINTAIN THE POSITIVE VIEW IN THE NOVEMBER, I BELIEVE THAT THE MARKETS SHALL WITNESS THE UPSIDE TILL 15TH NOVEMBER 2011. THEREAFTER MARKETS SHALL CORRECT AND AGAIN A DOWN TREND WILL BE NOTICED. HENCE I MAINTAIN MY VIEW OF WEAKNESS IN DECEMBER STARTING FROM NOVEMBER 15TH, 2011.
KEY DATES TO WATCH FOR IN US, INDIA & GLOBAL MARKETS FOR SHARP SWINGS/FALL: 1ST , 9TH, 17TH, 30TH NOVEMBER AND 1ST DECEMBER 2011.
THERE ARE 30% CHANCE THAT I MAY GO WRONG IN ABOVE ASTROLOGICAL ANALYSIS. SO PLEASE DON'T TRADE TOTALLY DEPENDING ON ASTROLOGY. USE YOUR OWN WISDOM AND CONSULT THE APPROPRIATE BEFORE ACTING.
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, INDIAN MARKETS MAY TRADE IN A BROAD RANGE WHERE STOCK SPECIFIC ACTION WILL BE SEEN. CORPORATE PERFORMANCE IN THE SECOND QUARTER SHALL BE THE FOCUS OF THE MARKET. GLOBAL CUES, WHERE THE FOMC MEETING ON 1ST & 2ND NOVEMBER, G20 MEETING SCHEDULED ON 3RD AND 4TH NOVEMBER, INDIA'S EXIM DATA FOR SEPTEMBER ON 1ST NOVEMBER, INDIA'S WEEKLY FOOD & FUEL INFLATION FOR THE WEEK ENDED ON OCTOBER 22, SHALL BE THE KEY EVENTS AND CUES TO WATCH FOR. INDEX BASED FRONT LINE STOCKS SHALL BE ON THE MOVEMENT THIS WEEK.
AFTER A LONG CONSOLIDATION IN THE RANGE OF 4700-5200 NIFTY GAVE A STRONG BREAKOUT RALLY LAST WEEK. NOW GOING UPSIDE NIFTY WILL HAVE VERY STRONG RESISTANCE IN THE RANGE OF 5420-5450. IF NIFTY MANAGES TO CLOSE ABOVE 5450 THEN 5600-5650 SHALL BE THE NEXT LEVEL WHERE NIFTY MAY PAUSE TO CONSOLIDATE.
AS NIFTY HAS MADE A GAP BETWEEN 5220 AND 5322, SO THERE IS STRONG POSSIBILITY THAT NIFTY MAY GO DOWN TO 5220 LEVELS TO FILL THE GAP IN THE VERY SHORT TERM. HENCE BOOKING PROFIT AT THE CURRENT LEVEL IS ADVISABLE SO AS TO RE-ENTER AROUND 5220 LEVELS.
FOR THIS WEEK: SUPPORT FOR THE NIFTY LIES AT 5320 AND RESISTANCE AT 5420. IF NIFTY BREAKS 5320 ON THE DOWN SIDE THEN IT MAY GO DOWN TO 5270-5220-5200, ON THE OTHER HAND IF NIFTY SUSTAINS ABOVE 5420, THEN IT MAY INCH UP TO 5450-5540-5600 LEVELS.
STRATEGY FOR THE WEEK:
BUY PE 5400 & PE 5300:IF NIFTY SUSTAINS BELOW 5320 TO BOOK PROFIT AROUND 5270-5220-5200 LEVELS KEEPING STOP-LOSS OF 5450(CLOSING BASIS).
BUY CE5400 & CE5500: IF NIFTY SUSTAINS ABOVE 5450(CLOSING BASIS)TO BOOK PROFIT AROUND 5540-5600 KEEPING STOP-LOSS OF 5320.
NOTE: CHANCES ARE HIGHER THAT NIFTY MAY MOVE DOWN FIRST THAN HIGHER FROM CMP AS NIFTY MAY MOVE DOWN TO FILL THE GAP CREATED LAST WEEK.
ASTROLOGICALLY: IN OCTOBER I HAD ANALYSED AND PREDICTED FOR A CORRECTION AND FALL DUE TO INTENSE PLANETARY CONFIGURATION TAKING PLACE IN THE LAST 10 DAYS OF OCTOBER. HOWEVER AGAINST MY VIEW MARKET RAN FAST ON THE UPSIDE. AS SAID EARLIER, I MAINTAIN THE POSITIVE VIEW IN THE NOVEMBER, I BELIEVE THAT THE MARKETS SHALL WITNESS THE UPSIDE TILL 15TH NOVEMBER 2011. THEREAFTER MARKETS SHALL CORRECT AND AGAIN A DOWN TREND WILL BE NOTICED. HENCE I MAINTAIN MY VIEW OF WEAKNESS IN DECEMBER STARTING FROM NOVEMBER 15TH, 2011.
KEY DATES TO WATCH FOR IN US, INDIA & GLOBAL MARKETS FOR SHARP SWINGS/FALL: 1ST , 9TH, 17TH, 30TH NOVEMBER AND 1ST DECEMBER 2011.
THERE ARE 30% CHANCE THAT I MAY GO WRONG IN ABOVE ASTROLOGICAL ANALYSIS. SO PLEASE DON'T TRADE TOTALLY DEPENDING ON ASTROLOGY. USE YOUR OWN WISDOM AND CONSULT THE APPROPRIATE BEFORE ACTING.
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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