Market View for Friday 29 Jul 2011

BSE Sensex 18209.52

Major Support 18188 – 18132 – 18022

Major Resistance 18327 – 18571

NSE Nifty 5487.75

Major Support 5475 – 5434 – 5407

Major Resistance 5512 – 5588

The markets opened with a gap down opening and continued to buck downwards under pressure of the RBI policy overhang. The closing is below the current range and therefore is a very weak sign for the markets. Friday being the last day of the week would be an important day for the markets. If the markets have to buck this trend then that could happen immediately in a day or two. Weakness is expected to stay till the indices trade below 18327 for the Sensex and 5512 for the Nifty. On the lower side the indices could test supports @ 18188 – 18022 for the Sensex and 5475 – 5407 for the Nifty. Individual stocks may continue to move their own way and therefore it would be better to hold a scrip specific view.

Market View for Thursday 28 Jul 2011

BSE Sensex 18432.25

Major Support 18358 – 18326

Major Resistance 18571 – 18708 – 18898

NSE Nifty 5546.80

Major Support 5521 – 5496

Major Resistance 5588 – 5631 – 5688

The markets continued to trade under pressure from the day before yesterday’s announcements made by the RBI governor. At current levels the indices have approached good support levels. If the indices respect these levels then the markets would continue to stay in strong hands. If these levels are cracked then that would suggest that we should get ready for a correction in the immediate short term. As of levels watch supports coming in @ 18358 – 18326 for the Sensex and 5521 - 5496 for the Nifty. On the higher side resistance should be watched @ 18571 for the Sensex and 5588 for the Nifty. Hold a scrip specific view…

Market View for Wednesday 27 Jul 2011

BSE Sensex	18518.22
Major Support	18481 – 18415 – 18326
Major Resistance	18708 – 18898 – 18944

NSE Nifty	5574.85
Major Support	5560 – 5532 – 5496
Major Resistance	5631 – 5688 – 5702

The markets started off on a steady note finally to give way to the statements coming out from the RBI. As the governor announced a hike in the interest rate the markets saw them selling off in a big way. The indices today have sold off from the important resistance coming in from the falling trendline. This also marks the formation of good resistance and in the future it will play an important role whenever the markets try to rally. The sell off could bring in further indecisiveness in the markets atleast for the week going ahead. Some good announcements from scam struck Indian government are a must to bring some cheer. As of levels the Sensex has a resistance @ 18708 and Nifty has it @ 5631 levels. On the lower side supports should be seen coming in @ 18481 – 18415 for the Sensex and 5560 – 5532 for the Nifty. Scrip specific action will continue in the markets. Investors should wait for some nice formations on charts.

Market View for Tuesday 26 Jul 2011

BSE Sensex	18871.29
Major Support	18753 – 18670 – 18533
Major Resistance	18932 – 19084 – 19131

NSE Nifty	5680.30
Major Support	5633 – 5616 – 5567
Major Resistance	5700 – 5740

The markets continued to rally to reach crucial resistances. At current levels the indices will face major resistance coming in from the falling trend line as well as from the highs made earlier this month. This is all amidst numbers not playing spoil sport anytime soon. For the Sensex watch resistance coming in @ 18932 and for the Nifty @ 5700 levels. Today is a crucial day as we wait and see the way markets react at these levels. On the lower side supports come in @ 18753 for the Sensex and 5633 for the Nifty. Hold a scrip specific view… Get ready for some action in the markets.

Market View for Friday 22 Jul 2011

BSE Sensex	18436.19
Major Support	18415 – 18326
Major Resistance	18566 – 18629 – 18765

NSE Nifty	5541.60
Major Support	5532 – 5496
Major Resistance	5578 – 5604 – 5642

The indices continued to trade sideways and dull. Weakness was clearly seen as the prices closed lower. On day end closing basis the indices formed spinning tops on candlestick patterns suggesting a cautious and indecisive mood on part of market players. Scrip specific movement continued with the main trigger being the numbers. Petronet which announced numbers day before yesterday saw some good interest in the counter. Though the numbers may make the indices take a breather players will witness scrip specific action. This should prove to be a good opportunity for the players in the current times. As of levels the Sensex has a support @ 18415 and the Nifty has it @ 5532 levels. On the higher side resistance comes in @ 18566 for the Sensex and 5578 for the Nifty. Watch these levels closely as when they are breached the indices may find themselves moving in that direction. Hold a scrip specific view…

Market View for Thursday 21 Jul 2011

BSE Sensex	18502.38
Major Support	18765 – 18481 – 18326
Major Resistance	18629 – 18765 – 18690

NSE Nifty	5567.05
Major Support	5555 – 5496
Major Resistance	5605 – 5642 – 5654

The indices traded flat with indecisive mood prevailing in the markets. The markets would continue to trade choppy sideways as the numbers continue to remain dull. For the Sensex watch resistance @ 18629 and for the Nifty @ 5605 levels. On lower side support comes in @ 18765 for the Sensex and 5555 for the Nifty. Stocks are not showing any strong patterns and therefore it is advised to hold a low profile…

Market View for Wednesday 20 Jul 2011

BSE Sensex	18653.87
Major Support	18521 – 18481 – 18326
Major Resistance	18690 – 18936 – 19000

NSE Nifty	5613.55
Major Support	5569 – 5557 – 5496
Major Resistance	5627 – 5654 – 5700

The indices rallied in the late hours on Tuesday. Most of the trade was due to short covering lead by traders running in to cover their positions. The positions are mostly driven by the numbers announced by the companies as of now. Traders playing it blind without discipline tend to get trapped on such occasions making the markets swing. This is a good opportunity for traders who trade based on logic. Some results to watched tomorrow which could also see action in the price of stocks are Petronet LNG, Polaris, Dish TV, LIC Hsg, Bharati Ship, Rel Ind Infra, Dr Reddy. As for the indices watch resistance @ 18690 for the Sensex and 5627 for the Nifty. On the lower side watch supports @ 18521 for the Sensex and 5569 for the Nifty. Hold a scrip specific view…

Market View for Tuesday 19 Jul 2011

BSE Sensex	18507.04
Major Support	18469 – 18326 – 18132
Major Resistance	18622 – 18694 – 18936

NSE Nifty	5567.05
Major Support	5550 – 5496
Major Resistance	5596 – 5654

The indices formed a spinning top formation on day end closing basis. This candlestick pattern symbolizes indecisive mood on account of market players. Tomorrow one of the results to be watched is Wipro and that is one announcement which could make the markets move. For tomorrow one needs to watch the highs and lows created on Monday as trend decider levels. Resistance and upward trend decider level should be watched @ 18622 for the Sensex and 5596 for the Nifty. On the lower side support and downward trend decider level should be watched @ 18469 for the Sensex and 5550 for the Nifty. With the uncertainty of the markets it is better for the investor to hold lower strike put options in Nifty which would be available cheap. This would also act as a hedge against the stocks held in the portfolios. For now hold a scrip specific view.

Market View for Monday 18 Jul 2011

BSE Sensex	18561.92
Major Support	18326 – 18132 – 17314
Major Resistance	18823 – 18936 – 19131

NSE Nifty	5581.10
Major Support	5496 – 5441 – 5195
Major Resistance	5653 – 5740

The markets traded indecisive throughout the week with two side movement. This was mainly due to the quarterly earnings which were being declared. From November 2010 it is the first time that we have seen the indices manage to make higher bottom and now it is to be seen whether they are able to make a higher top. This is an observation on weekly charts. A lower bottom could be a weak sign for the markets. These levels which one can watch with a medium term view are 5944 on the higher side and 5195 on the lower side for the Nifty. Watch these levels with a 3 month view. As for the immediate short term the indices face a resistance as they try to move up from current levels. This comes in from a falling trend line which exists @ 5740 for the Nifty and 19131 for the Sensex. So all upsides during this results month are expected to be caught at this trend line. For the current week supports and resistances which one needs to watch are the highs and lows made by the indices last week. These levels are 18936 for the Sensex and 5653 for the Nifty on the higher side. And on the lower side supports to be watched are @ 5496 for the Nifty and 18326 for the Sensex. The markets are expected to trade more or less near these levels. Scrips are expected to move as per the way players understand the numbers announced. Choppiness will remain high and intraday moves will be dictated by the positions in which traders are stuck.

Market View for Friday 15 Jul 2011

BSE Sensex	18618.20
Major Support	18449 – 18326
Major Resistance	18803 – 18843 – 18971

NSE Nifty	5599.80
Major Support	5541 – 5496
Major Resistance	5653 – 5697

The markets started off flat and managed to rally throughout the day with a big thumbs up. The last one hour was full of action as the indices cracked and sold off approximately 1.5% from the intraday highs. On the day end closing basis the indices have formed a spinning top formation which is an indecisive pattern and therefore for the trading today one needs to watch the highs and lows created yesterday as important levels. Resistance will be faced at all higher levels as the indices try to rally. More of less the indices are expected to trade at current levels as the quarterly earnings numbers keep coming out. For the Sensex watch support @ 18449 and for the Nifty @ 5541 levels. On the higher side Sensex has a resistance @ 18803 and the Nifty has it @ 5653 levels. These levels need to be closely watched as trend decider levels for the day today. Hold a scrip specific view….

Market View for Tuesday 12 Jul 2011

BSE Sensex	18721.39
Major Support	18679 – 18552 – 18323
Major Resistance	18843 – 18971 – 19084

NSE Nifty	5616.10
Major Support	5601 – 5566 – 5496
Major Resistance	5652 – 5697 – 5734

The markets corrected another day as the earnings season set off. Today Infosys to announce numbers and would be watched by all as the markets trade at crucial levels. For the day we need to watch the supports closely which if cracked could see the indices entering a correction. This could also take the indices down to the recent lows made in the last month. Supports come in @ 18679 for the Sensex and 5601 for the Nifty. Below these levels expect the indices to test all the levels mentioned above. On the higher side resistance will be faced by the Sensex @ 18843 and by the Nifty @ 5652 levels. Hold a Low profile for today…

Market View for Monday 11 Jul 2011

BSE Sensex	18858.04
Major Support	18682 – 18447 – 18132
Major Resistance	19131 – 19811

NSE Nifty	5660.65
Major Support	5610 – 5534 – 5441
Major Resistance	5740 – 5944

The markets close the week on an indecisive note with Doji / Spinning Top formation on candlestick charts. This close is on the falling trend line joining the recent tops. This also marks the importance of this level as a resistance as the markets get ready for the first quarter earning numbers which start coming in from this week. The developments will be closely tracked by all market players as they try to reaffirm the strength of the markets which have recently witnessed an approx 8% rally. The choppiness in the markets is set to rise and dull announcements would have a negative effect on the markets. At the current juncture for investors to get in aggressively they need to wait for a breakout above this trend line resistance. The highs and lows made by the indices last week would play an important role of trend deciders for the immediate short term. Sensex has a resistance @ 19131 and Nifty has it @ 5740 levels. On the lower side supports come in @ 18682 for the Sensex and 5610 for the Nifty. A move above or below these levels could help the indices move in that direction for this month. Stocks could see speculative interests coming in as their earning dates arrive. These stocks could prove to be a risky bet for investment but traders could see this as an opportunity. Wish you profitable week ahead…

Market View for Sunday 07 Aug 2011

BSE Sensex	18726.97
Major Support	18682 – 18694 – 18447
Major Resistance	18823 – 18942 – 19031

NSE Nifty	5625.45
Major Support	5610 – 5534 – 5441
Major Resistance	5655 – 5679 – 5706

The markets traded indecisive again for the third day in row. This is on account of the earnings season which starts from Friday. The indices are trading just below crucial resistance levels and the slightest of negative sentiment on part of the earnings numbers could play spoil sport. The choppiness is set to rise with the earnings number coming out. With an indecisive pattern on the day end closing basis the highs and lows formed by the indices would play an important role as we set for trade on Thursday. Watch resistance @ 18823 for the Sensex and 5655 for the Nifty. On the lower side watch supports coming in @ 18682 and 5610 for the Sensex and the Nifty respectively. A move above or below these levels would make the markets move in that direction. Get ready for a lot of surprises and plenty of moves from the coming week. Hold a scrip specific view…

Market View for Wednesday 06 Jul 2011

BSE Sensex	18744.56
Major Support	18694 – 18447 – 18132
Major Resistance	18837 – 18942 – 19031

NSE Nifty	5632.10
Major Support	5612 – 5534 – 5441
Major Resistance	5659 – 5679 – 5706

The markets continue to trade sideways. They manage to stay afloat though the upside has been restricted with the resistance coming in from the falling trend line joining all the recent tops. It seems the markets are getting to ready for the good and the ugly as the earnings season starts next week. For today watch support for the Sensex @ 18694 and for the Nifty @ 5612 levels. On the higher side resistance comes in @ 18837 for the Sensex and 5659 for the Nifty. Till the indices hold on to supports the choppiness will continue. An extraordinary positive development will help the indices break past the resistance levels. Hold a scrip specific view….

Market View for Tuesday 05 Jul 2011

BSE Sensex	18814.48
Major Support	18781 – 18447 – 18132
Major Resistance	18942 – 19031 – 19200

NSE Nifty	5650.50
Major Support	5633 – 5534 – 5441
Major Resistance	5679 – 5706 – 5750

The markets turned cautious as the indices reached the resistances coming in from the falling trend line formed by joining all the recent tops. The undercurrent is there as they manage to hold on to supports. The earnings season starts next week and could bring in cheer in the markets till the numbers do not turn out to be spoil sport. For the Sensex supports come in @ 18781 and for the Nifty 5633 levels. Above these levels the indices will manage to hold their ground. On the higher side resistance comes in @ 18942 for the Sensex and 5679 for the Nifty. Hold a scrip specific view…

Market View for Monday 04 Jul 2011

BSE Sensex	18762.80
Major Support	18447 – 18132 – 17925
Major Resistance	19031 – 19200 – 19811

NSE Nifty	5627.20
Major Support	5534 – 5441 – 5372
Major Resistance	5706 – 5750 – 5944

The markets bounced back on short covering as the June contracts expired. At current levels the markets are trading just below resistance coming in from a falling trend line joining the recent tops. The strength in the markets can be prominently observed for now. This is despite of all the negative news flow on the domestic as well as the global front. We have had scams, rising inflation, fuel price hike and rising interest rates to name a few. After all this the markets have managed to stay afloat. They have held their supports very well till now. This is something which market players should not forget. Now until and unless something drastically wrong happens we should not be expecting the markets to crack in a big way. All said and done this strength is also not enough for the markets to rally in a big way. The markets now need some positive developments on the policy front and the least on the numbers announced by the companies. The first quarter earnings season will start in the coming week. If these numbers happen to be good then that could prove to be a booster for the markets. For the Sensex watch supports @ 18447 – 18132 and for the Nifty @ 5534 – 5441 levels. Above these levels the indices are expected to hold positive. Resistance from the falling trend line comes in @ 19200 for the Sensex and 5750 for the Nifty. It is time for us to get ready for some action. In our careers we learn first and earn later, in the same way in the stock markets we need to be prepared for the opportunities which may come up any time. Opportunities are plenty if you stay in the stock markets for life. If you look at the stock markets with a come and go approach then it is not meant for you and neither would you be doing justice to your hard earned money. On that note let’s hold a scrip specific view and be watchful of all the opportunities that come our way…