Market View for Tuesday 30 Aug 2011

Index Levels

BSE Sensex 16416.33

Major Support 16248 – 16080

Major Resistance 16462 – 16549 – 16910


NSE Nifty 4919.60

Major Support 4862 – 4806

Major Resistance 4934 – 4965 – 5078

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The markets rejoiced on the footsteps of the global markets which also traded in the green today. This is amidst ‘IRENE’ hitting United States. It seems that India celebrated the win of ANNA HAZARE. For Tuesday the markets would again try to rally as they have been battered for long. Only a gap up opening could prove to be a spoil sport and could bring in dull trade in the markets. For the Sensex one should watch support coming in @ 16248 and for the Nifty @ 4862 levels. On the higher side resistance comes in @ 16549 for the Sensex and 4965 for the Nifty. Once these levels are crossed then expect a big jump in the intraday move. Hold a scrip specific view…

Market View for Monday 29 Aug 2011

Index Levels
BSE Sensex 15848.83

Major Support 15765 – 15330 – 14684

Major Resistance 16155 – 16549

NSE Nifty 4747.80

Major Support 4692 – 4538 – 4353

Major Resistance 4843 – 4965

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The markets continued to sell off with negative flows from the domestic as well as the global front. At current levels the charts suggest that the weakness would continue but a dead cat bounce cannot be ruled out as the indices test supports on the lower side. This bounce would be small, temporary and could live for a few moments in the intraday trade. Choppy trading activity will rule the markets for now as the indices trade in oversold and with lack of positive triggers to lift the sentiments for now. For this week one needs to watch supports coming in @ 15330 for the Sensex and 4538 for the Nifty. These are good support levels where the indices could take a breather. On the higher side resistance exists @ 16155 for the Sensex and 4843 for the Nifty. Scrip specific action should rule the markets and one need to be an opportunist to make the maximum of the lonely opportunity which could come your way. Nothing much to write in this newsletter. Anna Hazare has won is what everybody is saying – but I would say that the victory is not yet in sight. The things need to materialize only then we can say the people have won. But one good thing which happened for sure is that Anna is alive to fight for us. Let’s hope for the best…

Market View for Tuesday 23 Aug 2011

BSE Sensex 16341.70

Major Support 16248 – 16155 – 16046

Major Resistance 16370 – 16690 – 16910

NSE Nifty 4898.80

Major Support 4871 – 4843 – 4808

Major Resistance 4910 – 5011 – 5078

The markets bounced in the noon hours after witnessing choppy trade in the morning to close in the green. After having witnessed a big sell off it is possible that the indices may try to recover some of the losses. This move has to be traded cautiously as the indices would continue to face pressure at all higher levels that they achieve in the intraday trade. The August derivative contracts are scheduled to expire on the coming Thursday and this could make the indices trade more or less near the current levels bringing in choppiness. Global cues will continue to rule the markets for now as the domestic front is busy fighting corruption. The government has to do a lot of things to bring in cheer. Lets hope for the best. For the Sensex watch support @ 16248 – 16155 and for the Nifty @ 4871 – 4843 levels. Above these levels the indices will try to gather strength and test the higher resistances. Major resistance will be faced @ 16690 by the Sensex and 5011 by the Nifty. Hold a low profile in terms of individual stocks. With expiry on the cards it is expected that it could bring in some good opportunities. Its time to be a tiger – wait for the right opportunity to pounce on. Happy Investing and Happy Educating!

Market View for Tuesday 16 Aug 2011

Index Levels

BSE Sensex 16839.63

Major Support 16759 – 16687

Major Resistance 17043 – 17246

NSE Nifty 5072.95

Major Support 5053 – 4947

Major Resistance 5133 – 5198

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Wishing you a very happy Independence day. The global cues are positive for todays open and we expect a gap up opening. Along with the global markets the crude has also bounced back which is a negative for India. Therefore the probability of a confirmed trend for today will be seen only in the second half. This week we have only 3 trading sessions therefore we expect investors not to commit on either side of the markets. For today supports will be seen at 16759 and 5053 on the BSE Sensex and the NSE Nifty respectively. If we trade below these levels then we should witness a sell off to test the next support levels.

Market View for Friday 12 Aug 2011

Index Levels

BSE Sensex 17059.40

Major Support 17012 – 16858 – 16759

Major Resistance 17256


NSE Nifty 5138.30

Major Support 5121 – 4947

Major Resistance 5198


View
The markets seem to take a breather for the last two trading sessions. Volatility as predicted has come down and will be low even today. Next week having only 3 trading sessions we expect investors not to commit on either side of the markets. For today supports will be seen at 17012 and 5121 on the BSE Sensex and the NSE Nifty respectively. If we trade below these levels then we should witness a sell off to test the next support levels. We continue with our view - Investors who have already sold should stay away from the markets.

Market View for Wednesday 10 Aug 2011

BSE Sensex 16857.91

Major Support 16681 – 16500

Major Resistance 17000 - 17300

NSE Nifty 5072.85

Major Support 4935 – 4900 – 4862

Major Resistance 5150 – 5200

The markets once again taking global cues opened with a huge gap down, mid day we saw a good pullback which took the indices in the green only to let the markets go back to close the day in red. We are seeing some kind of support at lower levels. After so many days of volatile sessions we expect the day to be calm today with a minor see-saw. Again the volumes recorded were also very high. For today supports will be seen at 16681 – 16500 and 5000 - 4946 on the BSE Sensex and the NSE Nifty respectively. Investors who have already sold should stay away from the markets.

Market View for Tuesday 09 Aug 2011

BSE Sensex 16990.18

Major Support 16560 – 16318

Major Resistance 17000

NSE Nifty 5118.50

Major Support 4935 – 4900 – 4862

Major Resistance 5150

The markets opened with a big down gap yesterday, mid day we saw a good pullback which was to fool the investors at large. Finally the supply overpowered the demand as mentioned in yesterdays news letter. Again the volumes recorded were also very high. For today supports will be seen at 16318 and 4862 on the BSE Sensex and the NSE Nifty respectively. Investors who have already sold should stay away from the markets. Traders should use every rise to short with a momentum view.

Market View for Monday 08 Aug 2011

BSE Sensex 17305.87

Major Support 16470 – 16000

Major Resistance 17830

NSE Nifty 5211.25

Major Support 5000 – 4935

Major Resistance 5372

The markets opened a big down gap last Friday. The volumes recorded were also very high. This basically tells us that the supply has clearly overpowered the demand. With a bearish trend reversal pattern on the indices with confirmation the outlook on the market will be bearish for the medium term. Yes, we will see relief rallies that we will witness but these rallies should be sold into. For today supports will be seen at 16470 and 5000 on the BSE Sensex and the NSE Nifty respectively.

Market View for Thursday 04 Aug 2011

BSE Sensex 17940.55

Major Support 17859 – 17804 – 17482

Major Resistance 18005 – 18283 – 18440

NSE Nifty 5404.80

Major Support 5378 – 5343 – 5252

Major Resistance 5422 – 5496 – 5551

The markets opened with a gap down opening and traded the day sideways in a narrow range. The day saw the markets swinging up and down to finally close indecisive with a doji formation on candlestick charts. For the day expect the markets to rebound if they open with a gap down again. Wait for the first 15 minutes to trade so as to judge the direction of the move. If the markets open with a gap up opening then they would face selling pressure. As of levels watch resistance for the Sensex @ 18005 and for the Nifty @ 5422 levels. On the lower side supports should be seen @ 17859 for the Sensex and 5378 for the Nifty. Hold a low profile for the day…

Market View for Wednesday 03 Aug 2011

BSE Sensex 18109.89

Major Support 18037 – 17804 – 17627

Major Resistance 18283 – 18440

NSE Nifty 5456.55

Major Support 5433 – 5343 – 5252

Major Resistance 5496 – 5551

The markets gave away all the strength witnessed on Monday. This was amidst a lot of negative news flow in the markets on the domestic as well as the international front. The current closing suggests that the direction for the markets for now is down. With resistance @ 18283 – 18440 for the Sensex and 5496 – 5551 for the Nifty the markets are expected to trade weak. Opportunities in form of day trades and shorts should be capitalized. On the lower side supports are seen @ 17804 for the Sensex and 5343 for the Nifty. Weakness is here to stay for now. Be an opportunist in the market and it will earn good returns.

Market View for Tuesday 02 Aug 2011

BSE Sensex 18314.33

Major Support 18219 – 18131

Major Resistance 18440 – 18571 – 18708

NSE Nifty 5516.80

Major Support 5486 – 5453

Major Resistance 5551 – 5588 – 5631

The markets opened with a gap up opening amidst news of a solution on the US debt issue. Our markets after opening up witnessed pressure which made them move up and down eventually closing with a spinning top formation on candlestick patterns. This formation signifies indecision with players waiting for the actual trigger. For Tuesday market players would be all glued to the American markets busy interpreting the announcements which come out. This is an immediate trigger and a direction decider for the markets. As of levels watch support for the Sensex @ 18219 and for the Nifty @ 5486 levels. On the higher side resistance comes in @ 18440 for the Sensex and 5551 for the Nifty. The indices would decide their direction on breach of any of the above levels. Scrip specific action will continue in the markets.

Market View for Monday 01 Aug 2011

BSE Sensex 18197.20

Major Support 18131 – 17314

Major Resistance 18475 – 18753 – 18944

NSE Nifty 5482.00

Major Support 5453 – 5195

Major Resistance 5557 – 5633 – 5702

The RBI policy breaks the momentum in the markets. To add to it the Lokayut report on illegal mining in Karnataka leads to players getting cautious about a few companies being named which lead to further selling in the markets. All in all the last week was a bad time for the markets. Technically this sell off came in when the markets were trying to breach past the resistance from the falling trend line joining all the recent tops from November 2010. It is almost 9 months that the indices have not moved much. They continue to trade in a range of 10%. The indecisiveness is clear with the markets making lower tops and higher bottoms in the last 7 months. This time the direction of the markets is expected to be decided when the indices reach the earlier bottoms. If they breach the earlier lows then that would mean weakness and bears gripping the markets. For the markets to get into a strong hold of bulls they need to break past the trend line resistance which now has gained a lot of importance with the current formation. As of Technical levels watch resistance for the Sensex @ 18475 and for the Nifty @ 5557 levels. Below this the indices would remain under pressure and try and test supports @ 17314 for the Sensex and 5195 for the Nifty. Individual scrips will continue to shine and therefore it is advisable that investors hold a scrip specific view…